Spain's Inflation Hits A 12 Year High In July

Rising energy costs pushed Spain's EU harmonised inflation to a record 5.3 percent in July, higher than expected, according to the flash estimate from the IME yesterday.The data preceded overall euro zone consumer price data out this morning and which showed inflation in the 15-member currency bloc rose to a record 4.1 percent in July from 4 percent in June.

Spanish consumer price growth, among the highest in the 15-member currency bloc, rose to 5.3 percent from 5.1 percent in June.



It is now quite probable that Spanish inflation has peaked, and could even ease back slightly in August before falling considerably between now and year-end as the severe economic slowdown bites and generally lower oil prices arrive.