Food, petrol price hikes push up Spain inflation

Madrid: Soaring food and petrol prices have pushed up inflation to 8.7 per cent in Spain in May, according to preliminary data published by the country’s Statistical Institute (INE).

May’s increase follows a 1.5 per cent fall in inflation in April, after March’s high of 9.8 per cent, Xinhua news agency reported citing the INE data.

Last week, the price of fuel reached a record high of 1.94 euros per liter, while the cost of diesel was 1.867 euros per liter.

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These price hikes, partly caused by the Ukraine war, have countered the effect of a 20 eurocent-per liter discount imposed by the government on April 1.

The INE also said that the rate of core inflation, which does not include the price of energy or processed foods (which are considered too volatile), rose by 0.5 per cent during May to 4.9 per cent, the highest since October 1995.

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