The Spanish Industrial Production Prices rose at a record rate of 5.5% per annum in February. This was due to rising energy costs. The strong recovery from the pandemic in Spain has driven industrial prices to record highs even before Russia invaded Ukraine. This was due to increased power costs.
Prices rose by 40.7% in February, which is the highest level since January 1976 when the data series started. This was due to a 114.4% rise in energy costs in February compared to the same month last.
INE reported that capital goods increased 4.6% due to higher costs for carmakers.
Inflation is a result of companies passing on price increases in industrial production to their customers. Recent months have seen a rise in energy prices and inflation in European countries. In Spain, the inflation rate is at its highest point in 35 years.
Russia’s invasion in Ukraine and its resulting economic fallout have scuttled hopes that prices will drop soon. The European Union’s southern members, including Spain, called on the bloc to adopt common energy policy to address the situation.
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