Spanish Inflation Surges to Highest in Nearly 30 Years on Food

(Bloomberg) --

Spanish inflation accelerated to the fastest in nearly three decades on rising food prices, underscoring the lingering consequences of supply bottlenecks across the continent.  

Consumer prices jumped 5.6% in November, national data released Monday showed -- the highest since September 1992 -- due to an increase food and fuel prices. The European Union-harmonized measure also came in at that level, matching the median forecast in a Bloomberg survey.

The figure gives an early look at European pressures that are already weighing on the European Central Bank. Germany’s reading is due later on Monday, with data from France, Italy and the euro area coming the following day.

ECB Executive Board member Isabel Schnabel said last week that inflation risks are “skewed to the upside,” while Vice President Luis de Guindos warned factors driving inflation are becoming more structural.

The Bank of Spain saw inflation peaking in November on surging energy costs before easing back below the ECB’s 2% target next year, its chief economist Oscar Arce said in September.

©2021 Bloomberg L.P.