The Eurozone is breaking at the seams as Spanish inflation reaches a 13-year high, according to an EU warning.
INFLATION in Spain has reached a 13-year high, the highest since the financial crisis of 2008, as the ongoing energy crisis has resulted in an extraordinary surge in electricity costs in the EU country.
According to the Consumer Price Index (CPI) data released by Spain’s National Statistics Institute (INE) on Wednesday, inflation hit 4% per year in September.
Consumer prices have risen at a faster rate than in August of last year, reaching a level not seen since September 2008.
The INE noted in a report that rising power prices – and to a lesser extent, higher package holiday prices, fuel and lubricants for vehicles – were having the largest impact on inflation.
Natural gas prices have been steadily growing since April as countries recover from the coronavirus pandemic, with the cost of the commodity jumping by 280 percent in Europe this year.
According to the New York Times, the recent surge in natural gas prices has resulted in an increase in energy expenditures, with European customers already feeling the pinch.
Because of the crisis, Spanish households are paying almost 40% more than they were a year ago.
Meanwhile, core inflation in the European nation grew 0.3 percent in August compared to August, a measure of how consumption is becoming more expensive without accounting for energy and unprocessed foods. It has now dropped to 1%.
The INE stated that the disparity between these two measures is at an all-time high.
Inflation has risen in other EU countries as a result of the prolonged energy crisis, which has been exacerbated by a scarcity of heavy-duty lorry drivers across Europe.
Late in August, Germany’s Federal Statistical Office reported that prices had increased by 3.9 percent year on year, while prices in Belgium had increased by over 2.7 percent.
According to the Office for National Statistics, the UK’s CPI increased by 3.2 percent in August, owing largely to the coronavirus outbreak.
The hospitality business, which has been closed for much of the last 18 months, made the biggest contribution to the change.
As the pandemic spread over the world in 2020, prices plummeted, and many sectors suffered from a lack of business. As economies freed, demand soared, causing a tremendous readjustment.
The high cost of transportation in Spain – which has also risen throughout the pandemic – as well as essential shortages. “Brinkwire News Summary.”