Inflation picks up in June to 10.2%, its highest since 1985

The Consumer Price Index (CPI) shot up its year-on-year rate 1.5 pointsup to 10.2%, its highest level since April 1985, according to advanced data this Monday by the National Institute of Statistics (INE).

Inflation thus chains two consecutive months of rises after in April it moderated 1.5 blow points, up to 8.3%. In May, it climbed to 8.7%, and in June it exceeded the feared double digits: 10.2%, establishing the maximum of this crisis and a record since 1985, despite the implementation of the cap on gas and the other government measures to contain prices.

The data for June, which will have to be confirmed by Statistics in the middle of next month, is four tenths higher than the peak that had been reached in the month of March, of 9.8%. According to the INE, this increase in the year-on-year CPI to 10.2% in June is mainly due to increases in the prices of fuels and food and non-alcoholic beverages. The strong upturn in the prices of hotels, cafes and restaurants has also had an influence.

The INE incorporates in the CPI data preview an estimate of underlying inflation (without unprocessed food or energy products), which increased six tenths in June, to 5.5%, its highest value since August 1993. which shows that the runaway rise in prices has already been transferred to most of the shopping basket of goods and services.

Everything, or almost everything, is much more expensive than a year ago. A reality that is holding back the consumption of families, as seen in the first trimesterand, therefore, economic recovery.