INE confirms that general inflation rose 8.7% last month and core inflation rose 4.9%

• Spain to repeat as EU’s largest economy in 2023 with highest inflation: 4.8%, double than expected

INE this Friday confirmed the advance price data it submitted at the end of May: the IPC up 8.7% last monthdriven by an increase in the price of petrol and of Foodswhen underlying inflation -which does not include the prices of energy and fresh produce- rose a 4.9%.

The main reason for the increase, which was higher than analysts’ estimates, is a rise in the price of transportation-related products, which had an annual variation of 14.9%, higher than the double digits recorded in April due to the increase in prices. of fuelDespite the fact that last month, like April, 20 cents per liter off In government approved fuel to ease the pockets of the drivers.

Second reason. there was an increase in the prices of Food and non-alcoholic beverageswhose rate increases from year to year by one 1 1%Nine tenths more than in the previous month, and the highest since the start of the series, in January 1994. Bread and cereals, milk, cheese, eggs and meat increased notably compared to the 2021 stability.

OECD It has already warned this week that inflation will be prolonged and high as a result of the prolonged war in Ukraine and, above all, inflation. sanctions against Russia Which are inflationary by definition, because by prohibiting the purchase of energy from that country, the prices of energy products continue to rise as the available supply in the market decreases.

For this reason, the OECD estimates that the CPI will close the year with a Average growth of 8.1% and stay high next year and end the year again with average rebound 4.9%.