Spanish Inflation at 13-Year High in Foretaste of Regional Spike
Spanish Inflation at 13-Year High in Foretaste of Regional Spike
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Inflation accelerated in Spain to the fastest pace in 13 years, evidence of how surging energy costs are feeding through to citizens around the euro-zone economy.
Consumer prices rose 4% in September from a year earlier, more than the 3.6% median forecast of economists in a Bloomberg survey. The number is an initial taste of the inflation jump encountered in the region this month, with Germany, France and Italy all set to report their own data in coming days before the euro area does so on Friday.
European Central Bank President Christine Lagarde insisted on Tuesday that there is no sign that the surge in prices is becoming “broad-based” across the economy. The Bank of Spain expects inflation will peak in November and later ease back to the target of 2%, according to its chief economist, Oscar Arce.
His comment preceded Spanish growth data that shocked economists with a downward revision of the estimate of expansion between April and June to 1.1%, from the 2.8% pace previously reported. Combined with Wednesday’s inflation reading, that could stoke concerns of a stagflation effect in the euro area’s fourth-biggest economy.
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