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Spanish inflation hits a high

November 13, 2012 Euronews
The financial gloom enveloping Spain deepened as October figures showed consumer prices hit a high. Data revealed the rate of inflation rose at its fastest pace since May last year to 3.5 percent.

Analysts point to the governments September rise in VAT as the main reason, “what we are seeing today in Spain is almost all due to the tax rise,” said one expert.

The government must decide this month if it can honour a pledge to raise pensions in line with November’s inflation figure. The Bank of Spain has already warned against such a move which could cost Madrid up to four billion euros at a time it is slashing spending on health and education.
Company — Spain
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    The Kingdom of Spain
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