Business

Fuel Cost Push Spanish Inflation To 21-Month High

Spanish inflation jumped to a 21-month high of 3.4 percent in March as the Middle East war caused fuel prices to spike, revised data showed on Tuesday.

This article was originally published by Insider Paper.

Transport costs increased 5.3 percent year-on-year due to higher prices for fuel and lubricants for personal vehicles, statistics office INE said in a statement, revising upwards a preliminary March inflation estimate of 3.3 percent.

Housing, clothing and footwear prices also contributed to the figure, the highest since June 2024 when inflation also hit 3.4 percent.

Iran closed the Strait of Hormuz, a commercially critical waterway for oil, gas and fertilisers, after US-Israeli strikes triggered the war on February 28, unleashing turmoil for global energy markets.

Spain’s leftist government put in place measures worth five billion euros ($5.9 billion) to cushion the blow on households and businesses, including tax cuts and a direct subsidy for the hardest-hit sectors.

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