MADRID: Spanish inflation accelerated in November to its highest level in nearly three decades on the back of rising food and gas prices, official data showed on Monday.

Consumer prices jumped 5.6 per cent, up from a 5.4 per cent increase in October, according to the preliminary figures from the national statistics institute.

That is its fastest pace since September 1992, when the rate was 5.8 per cent.

The surge in inflation in the Eurozone’s fourth-largest economy was due largely to a spike in food prices; followed by higher gas prices, the statistics office said.

Electricity costs; however, declined slightly after a month-long acceleration, it added.

As in other European Union nations, inflation in Spain has risen since the start of the year after consumer prices declined during most of 2020 due to the economic impact of the pandemic lockdowns.

In October, the Eurozone inflation reached 4.1 per cent, well above the European Central Bank’s target of 2 per cent and equal to a high set in July 2008.

But the bank believes Eurozone inflation will peak in November and is set to gradually slow next year, as the supply bottlenecks and the energy crunch ease, board member Isabel Schnabel said earlier this month.

Investors worry that the central banks will withdraw their stimulus measures sooner-than-expected to tame inflation.

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