• Sat. May 18th, 2024

Spain’s Inflation Takes a Steep Turn in March: A Breakdown of the Monthly Prices and Underlying Causes

BySamantha Jones

Mar 27, 2024
Spain’s Inflation Reaches 3.2% in March as VAT Returns to 21% after Three-Year Absence

In March, Spain experienced a significant increase in inflation, with prices rising by 0.8% compared to February’s 2.8%. The primary drivers of this increase were the end of tax cuts on electricity and the return to a 21% VAT rate. This marked a significant rise in prices compared to the previous month.

The monthly price evolution has been on an upward trend since the beginning of the year, with prices rising by 0.1% in January, 0.4% in February, and 0.8% in March. This is the largest increase since February 2023. The underlying inflation also rose by 0.5% in monthly terms.

However, provisional data released by the National Institute of Statistics suggests that underlying inflation, which excludes fresh food and energy products, will be moderated to 3.3%, the lowest rate in the last two years. This is a drop from 3.5% in February and the first time since 2022 that core inflation is above the general index.

Food prices in March rose less than they did in the same month last year despite some increases due to rising gasoline and services driving price increases along with certain food products like olive oil

By Samantha Jones

As a dedicated content writer at newszxcv.com, I bring a passion for storytelling and a keen eye for detail to every piece I create. With a background in journalism and a love for crafting engaging narratives, I strive to deliver informative and captivating content that resonates with our readers. Whether I'm covering breaking news or delving into in-depth features, my goal is to inform, entertain, and inspire through the power of words. Join me on this journey as we explore the ever-evolving world of news together.

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