Bloomberg News Agency reported on Friday that inflation in Spain recorded its highest levels since June 2024 as a result of the war in Iran, which strengthens the European Central Bank’s justifications for raising interest rates.
Data showed that consumer prices in Spain rose by 3.3% on an annual basis in March, compared to 2.5% last February. However, this increase was lower than economists’ average forecast of 3.8%.
The Spanish statistics office, Eni, explained that this increase is mainly due to the increase in fuel prices. The rise in energy prices resulting from the ongoing conflict in the Middle East contributes to raising fears of a renewed wave of inflation that we witnessed four years ago.
Investors expect the European Central Bank to intervene, and some officials indicate that they are already considering raising borrowing costs at the bank’s meeting scheduled for next month.
