Spanish prices rose 9.3% in the 12 months to September, National Statistics Institute data showed, a fall of more than one percentage point, thanks to a public transportation price cut and an electricity price slowdown.
The reading was the lowest since May and lower than the 10.1% forecast by analysts polled by Reuters. The locally measured inflation figure fell to 9% from 10.5%.
Core inflation, which strips out volatile fresh food and energy prices, was at 6.2% year-on-year, down from 6.4% in August, the INE data showed.
There is a statistical effect in the sharp reduction as electricity prices in September 2021 had already seen a hike and initiated the upward path.
Subsidy Programme
The government in September introduced a subsidy programme of free train tickets and price cut for public transportation, which also contributed to curbing the general price increase.
The INE also suggested that a fuel price declined has helped to reduce the inflation rate.
Spain hit an inflation peak in July, when the EU-harmonised rate was at 10.7%, and the government and the Central Bank expect prices to moderate in the coming months.
The government has been approving successive relief packages, with tax reductions on power and gas and a cap on gas price for power generation.
Elsewhere, Unions representing some of the 234,000 workers at large retailers in Spain such as Carrefour, IKEA and department store chain El Corte Inglés,plan to demand pay raises of at least 18% to offset the effects of soaring inflation.
News by Reuters, edited by ESM – your source for the latest retail news. Click subscribe to sign up to ESM: European Supermarket Magazine.
