The Consumer price inflation in Spain attained a value of 3.58 % in 2023
GlobalData projects the figure to change by 99 bps between 2024 and 2028, reaching...
Inflation
Inflation is the term used to describe an increase in the price of goods and services within an economy that reduces the purchasing power of the currency. It is calculated as the rate of price change over a specific period. The consumer price index is one of the most used measures for determining inflation in an economy (CPI).
Global Inflation
The average yearly rate of growing rise in national prices across all nations is what is known as global inflation. There are several ways to compute it, including the basic average, weighted average, and median price change. Due to supply chain disruption brought on by the conflict between Russia and Ukraine, the global inflation rate is predicted to increase to 6.5 percent in 2022 from 3.5 percent in the previous year. Between 2021 and 2022, the annual inflation rate increased in most nations, although it increased at some of the greatest rates in Europe, Brazil, Turkey, the United States, and Israel. Nearly half of the Eurozone nations experienced double-digit inflation by June 2022, and the region's average inflation rate hit 8.6 percent, the highest level since the currency union in 1999.
Consumer Price Inflation in Spain
Between 2018-2021, the consumer price inflation in Spain was highest in the year 2021, reaching 3.1%, a decrease of 10.0% over the previous year 2020. Between 2018 to 2021, Spain’s consumer Inflation increased by 0.8%.
The coronavirus crisis has led to the steepest fall in prices in Spain on a year-on-year basis in 2020. The country recorded deflation of 0.3% in 2020. In 2021, the inflation rate stood at 3.1% with higher demand for goods and services. In 2022, GlobalData projects the inflation rate to rise steeply to 7.6% 2022, due to the rise in the prices of oil and supply chain disruption caused by the Ukraine-Russia war.
The Spanish economic growth is expected to slow down in 2022 due to the impact of inflation stoked by Russia’s invasion of Ukraine which is hurting consumers’ confidence and lowering the demand for domestic goods and services. GlobalData forecasts the real GDP to slow down to 4.5% in 2022 and 3.0% in 2023 from 5.1% in 2021.
Factors that Impact Inflation Rate
Some of the major factors affecting consumer prices are government policies, money supply, consumer spending, employment levels, high disposable income, and wage levels. Interest rates can also have a significant impact on spending on consumer goods.
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