Inflation soars even more in July to 10.8%, highest not seen in 38 years

The Consumer Price Index (CPI) stood at 10.8% in year-on-year variation in July according to the first advance made public by the National Statistics Institute (INE). We will have to wait until August 12 to know the final data. Inflation continues to run amok and is even higher, when it registered a historical mark not seen in 37 years. Today’s data represents a maximum of almost 38 years, since September 1984.

Although the CPI fell two tenths in July in relation to the previous month, giving some respite, the truth is that there is no respite in prices. In addition, the underlying rate, which excludes the most volatile products such as energy and unprocessed food prices, climbed to 6.1% in July, from 5.5% the previous month and its highest level since January 1993.

According to the INE, the increase in the year-on-year CPI to 10.8% is mainly due to the rise in the prices of food and non-alcoholic beverages and electricity and the behavior of clothing and footwear, whose prices fell less than last year.

Inflation maintains the upward path that began in March 2021 and was only interrupted in January, when it moderated 4 tenths to 6.1%, and in April, when it fell one and a half points, to 8. 3%.

has acknowledged this week the First Vice President and Minister of Economy, Nadia Calviño, who has assured, however, that the measures promoted by the Government are limiting the Consumer Price Index by more than 3.5 percentage points.

Drowned by inflation, this week the autonomous communities to combat effects that continue to take their toll on all Spaniards, who suffer a clear loss of purchasing power.

“Inflation is the main task facing the Government,” says Pedro Sánchez

In the course balance, usual before the summer holidays, the President of the Government, Pedro Sánchez, has assured that inflation “is the main task that the Government of Spain has ahead of it”.

Although he has defended the government’s action to deal with the rise in prices, as well as the consequences of the war in Ukraine, he has recognized the “bad data”.

However, he recalled that since prices began to rise, the Government has promoted 30,000 million in aid for the middle class and the most affected sectors, which represent 2.3 points of GDP.