Inflation ends the ‘truce’ and rebounds to 1.8% in October after the return of VAT to the basic basket

The truce was short. After four months of moderating, inflation in October accelerated again and reached 1.8% year-on-year (compared to 2023), three tenths more than the 1.5% recorded last September. The data is from the National Institute of Statistics, and confirms that Spain is once again approaching that 2% that the European Central Bank sets as a reference threshold to consider that prices are ‘controlled’ and, very importantly, to decide if they continue to fall. interest rates.

Core inflation, for its part, which does not take into account the most volatile elements of the basket – energy and unprocessed food – stood at 2.5%.

Precisely, the INE has attributed the increase mainly to fuel and electricity, and to that we must add the return of VAT to the basic shopping basket. It was in October when staple foods that enjoyed a rate of 0% began to be taxed at 2%, prior to next year’s tax rate at 4%. ABC did the calculations, and since October the shopping basket has been five euros more expensive.

The CEOE, among others, already warned that the CPI was going to be conditioned by this, in addition to the prices of raw materials in international markets.