Inflation rebounds to 1.8% in September, pressured by fuel and electricity

Inflation in October stood at 1.8%, according to the progress published today by the National Institute of Statistics (INE). Thus, the price boom – in year-on-year terms – remains below 2%, which is the reference threshold of the European Central Bank, but it rises slightly compared to September, when the increase was 1.5%. year-on-year. Core inflation, for its part, which does not take into account the most volatile elements of the basket – energy and unprocessed food – stands at 2.5%.

All in all, inflationary pressure is increasing again after having chained four consecutive months of declines after the increases experienced in March, April and May, but, as has already been said. This suggests that the experts’ forecasts last month were true and by the end of the year inflation will have once again exceeded the 2% threshold.

This, explained the CEOE in a statement, is because the prices are conditioned by the «pace of reversal of anti-inflationary measures and the prices of raw materials in international markets. Regarding the latter, it must be remembered that on October 1, foods that enjoyed a 0% VAT rate began to be taxed at 2%, within the process of progressive withdrawal of fiscal aid launched by the Government to alleviate the impact of inflation on households