Annual Inflation Update

Spain's annual inflation rate climbed to 2.3% in June, as confirmed by the National Statistics Office (INE). This marks an upward revision from the initial estimate of 2.2% and a noticeable increase from May's 2%.

Key Factors Behind the Rise

The uptick in inflation was primarily fueled by higher costs in transportation and housing, which surged to 4.2% annually, largely due to escalating energy prices. Additionally, food and non-alcoholic beverages saw a faster growth rate of 2.8% during the same period.

Monthly and Core Inflation Insights

On a monthly basis, consumer prices rose by 0.7% compared to May. The Harmonized Index of Consumer Prices also reflected this trend, standing at 2.3%, up from the previous month's 2%. Meanwhile, the core inflation rate, excluding volatile items like unprocessed food and energy, held steady at 2.2%.