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Spanish retail sales slip as inflation rises

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By Euronews
Spanish retail sales slip as inflation rises

There is an indication that higher inflation may be having an effect on retail sales in Spain.

They were up by just 0.1 percent in January on a seasonally-adjusted basis from a year earlier.

That is the slowest pace of growth recorded since July 2014 and well below economists’ predictions.

According to the National Statistics Institute retail sales had risen 2.1 percent year-on-year in December. That figure was revised down from the 2.9 percent reading previously reported.

Spain’s economic recovery is now well into its fourth year, but the inflation rate has recently risen above three percent, which is higher than other major eurozone economies.

Many analysts have projected that the pace of job creation would ease in 2017 and a rebound in consumer spending would move into lower gear, as prices rise.

Economic data for the start of the year has proved mixed so far, however. with registered employment rising strongly in February for instance.