Spanish Inflation Highest Since 1989

Spain inflation accelerated at the fastest pace in more than 32 years in February, flash data from the statistical office INE showed on Monday.

Consumer price inflation rose to 7.4 percent in February from 6.1 percent in January. Economists had forecast inflation to rise moderately to 7.1 percent. A similar higher rate was last seen in July 1989.

Excluding energy, underlying inflation increased to 3 percent from 2.4 percent a month ago.

Inflation was driven by increases in prices of food and non-alcoholic beverages and fuel and oil.

EU harmonized inflation climbed to 7.5 percent in February from 6.2 percent. The rate also far exceeded the economists’ forecast of 6.8 percent.

On a monthly basis, consumer prices advanced 0.6 percent, in contrast to the 0.4 percent decrease a month ago. Likewise, the harmonized index of consumer prices moved up 0.7 percent, reversing the 0.8 percent fall in January.