MADRID – Spanish inflation hit a 13-year high in September, propelled by electricity, fuel and clothes prices, official data from the National Statistics Institute (INE) showed on Thursday, confirming early data released two weeks ago.
Consumer prices rose 4% year-on-year in September, the fastest pace since September 2008, according to data from INE, compared to 3.3% in August. The monthly inflation rate was 0.8%.
Electricity prices rose almost 11% during the month and are up 44% in the 12 months through September, the INE said in its more detailed second reading report. Without tax cuts approved by the government during the summer, electricity prices would have risen 61% and would have brought inflation rate to 4.5%, the INE said.
With price pressures steadily building on a slew of factors, from higher energy prices to supply bottlenecks, euro zone borrowing costs have risen in recent weeks on expectations of a hike in interest rates.