Spain to raise inflation forecast after price hike – economy minister

People walk past a clothing store in Ronda, southern Spain, April 27, 2022. REUTERS/Jon Nazca

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MADRID, July 14 (Reuters) – The Spanish government will raise its inflation forecast after annual inflation hit a 37-year high through June, Economy Minister Nadia Calvino said on Thursday.

Spain’s inflation rate will remain at the current level of around 10% before starting to decline at the end of the summer, she said in an interview with local RNE radio.

“The forecast continues with high, very high inflation, and our aim is to bring inflation back close to the European Union average,” she said, adding that the government would take more measures to cushion negative impact on consumers.

Spanish inflation has accelerated in recent months, driven by rising energy and food prices, and exceeded 10% for the first time in 37 years in the 12-month period between ending in June, the country’s statistics institute said earlier this week.

The Spanish government is due to update its official forecasts for most indicators, including inflation and economic growth, in September. The current inflation forecast for 2022 as a whole stands at 6.1%.

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Reporting by Inti Landauro; Editing by Hugh Lawson and Jamie Freed

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