Spanish consumer prices surged in August driven by higher oil prices even as the debt-plagued nation looks to come out of a crippling recession, data released on Thursday showed.
EU-harmonised consumer prices rose by 2.7% on an annual basis in August, sharply higher than the 2.2% increase in prices registered in July, according to preliminary data from the Institute of National Statistics.
August consumer prices were much higher than a market consensus for an unchanged reading.
August consumer prices were the highest since November, when prices began to move steadily
lower for a few months before gaining in recent months.
Crude oil prices are up around 8% for the month of August so far.
Spain depends on imports for ~70% of its energy needs.
Consumer prices in Spain could well rise further from September 1 when value-added tax (VAT) is set to be increased to 21% from 18%, according to reports.