Inflation and counter-inflationary policy measures: The case of Spain

​​1. Recent developments in Inflation in Spain

The Spanish inflation rate, measured by the annual change in the Harmonised Index of Consumer Prices (HICP), reached 10.7% in July 2022, its highest value since the beginning of 2021. Since then, however, it has been on a downward path, and according to the October leading indicator, this rate has fallen to 7.3%, a reduction of 3.4 percentage points. (Figure 1)²⁾²⁾Unless otherwise stated, the source of data is Eurostat.. Moreover, if we look at the monthly changes in the price level, we see that it has remained almost constant since June this year (Figures 2 and 3). This trend contrasts with the Eurozone average, where the annual inflation rate has risen from 8.9% in July to 10.7% in October. Spain was the eighth country with the highest inflation rate in the Eurozone in July but the 18th in September.