The consumer price index (CPI) in Spain rose by 0.4% in August to 3.3% year-on-year, the highest rate since October 2012, as a result of higher electricity prices according to the CPI leading indicator published on Monday by the National Statistics Institute (INE).
This advanced indicator, if confirmed, would represent an increase of four tenths of a percentage point compared with the year-on-year rate recorded in July (2.9%) and would mark the sixth consecutive month of rising inflation.
For its part, the estimated annual rate of change of core inflation (the general index excluding unprocessed food and energy products) has increased by one tenth of a point to 0.7%, which is more than two and a half points below the increase in the CPI.
If prices were to maintain their current trend in the coming months of the year, updating pensions according to the current CPI would entail an additional cost of 3.2 billion euros at the end of the year.
