Spain core Inflation highest since 1995 mainly due to Russia-Ukraine war

The national consumer prices in Spain have gone up and reached 8.7% in May 2022. In April, the prices were near 8.3%. Along with that, the core inflation is also at its peak, since 1995, as per the official data. The National Statistics Institute(NSI) data showed a formal report last month.

The report mentioned the increment of fuel and crude pieces, year-on-year, by fifteen percent. The cost of other necessary items like food, bread, meat, fruits, and beverages (non-alcoholic) has also been at its highest in the past 28 years. Eleven percent is the annual increase in these items.

The “highest since’ list also includes core inflation, which is at 4.9% (over 0.5% of what it was in April). The core inflation has been at its peak since 1995, according to the data published by the National Statistics Institute.


Due to the ease in the energy prices, the prices of all goods were brought back to normal after the 40-year highest March rate of 9.8% , the rate being 8.3% in April and increasing in May.

What is the reason behind the roaring percentages of the core inflation rate?

The Russia-Ukraine war has left bad economic consequences worldwide, and the inflation rate has been high ever since February. The Government of Spain, however, expects a slowdown in the rates in the forthcoming months. The European Central Bank, on Thursday, gave a stop to its long-lasting stimulus, stating that the bank would raise interest rates in July for the first time after 2011. It further added that the bank could even take a potentially larger step in September .
Spain’s Economy Minister Nadia Calvino gave his statement in a TV interview, saying that the prices are likely to return to normal next year. She also added that there will be a rapid decrease in the costs by the second half of the year 2023.

What is meant by core inflation?
The representation of a long-lasting trend in the price levels is known as core inflation.
The change in transitory prices should be excluded in the calculation of core inflation rates.
In simpler words, the change in the prices of goods, excluding the energy and food sector, is known as core inflation.
The calculation is done using the CPI (Consumer Price Index).