Copayment for medicines pushes up inflation to 2.2 percent in July

The increase took place despite domestic demand remaining weak

Inflation picked up in Spain in July due to the introduction of a copayment system for medicines, which pushed up prices, the National Statistics Institute (INE) said Monday. The increase took place despite domestic demand remaining weak as the INE also confirmed earlier estimates by the Bank of Spain that showed that the recession deepened in the second quarter of the year.

A flash estimate by the INE indicated the consumer price index was up an annual 2.2 percent in July, compared with 1.9 percent the previous month.

The government’s decision to raise the standard rate of the value-added sales tax to 21 percent from 18 percent, and the reduced rate from eight percent to 10 percent as of the start of September, will generate further inflationary pressure.

The INE said GDP in the second quarter of the year shrank 0.4 percent from the previous three months when it contracted 0.3 percent. On an annual basis, output fell 1.0 percent after declining 0.4 percent in the first quarter.

The government earlier this month revised its economic forecasts to show GDP contracting 1.5 percent this year, compared with a previous estimate of a fall of 1.7 percent.

However, for next year it now expects output to remain negative, with GDP seen declining 0.5 percent when previously it forecast modest growth of 0.2 percent.

Para poder comentar debes estar registrado en Eskup y haber iniciado sesión

Darse de alta ¿Por qué darse de alta?

Otras noticias

LATIN AMERICA

Venezuelan students will not abandon demonstrations

EFE / Alfredo Meza Caracas

Protest leaders issue demands for talks

Deadline approaches for vigilantes to disband

Luis Pablo Beauregard Mexico City

Mexican Forces will have to register weapons with authorities on May 10

Mujica to ask Obama for help in anti-smoking dispute

Magdalena Martínez Montevideo

Phillip Morris claims Uruguay is violating bilateral treaty

Accords reached in Venezuelan peace talks

Alfredo Meza Caracas

Opposition agrees to take part in a truth commission

Calm returns to Nicaragua after quake panic

Carlos Salinas Managua

Experts want to determine what sparked the tremors

Venezuelan TV reporter released unharmed

Nairobi Pinto was found unharmed on Monday

Cocaine shipments through Caribbean on the rise

Maye Primera Miami

Smugglers being forced to use alternative routes following crackdowns in Mexico

García Márquez’s health is “delicate,” says family

Juan Diego Quesada Mexico City

Nobel Prize-winning author reportedly receiving palliative care

Lo más visto en...

» Top 50

Webs de PRISA

cerrar ventana