MADRID: Spanish inflation rose in November at the fastest rate since August due mainly to higher fuel and electricity prices, preliminary official data showed Thursday. Consumer prices rose 2.4 percent on an annual basis, up from 1.8 percent in October, national statistics office INE said in a statement. "This development is mainly due to the increase in electricity and fuel prices, compared with the decrease in November last year,” the statement said. Inflation had slowed to 1.5 percent in September after reaching 2.3 percent in August. Spanish inflation hit a record 10.8 percent in July 2022, its highest level since 1985 as Russia’s invasion of Ukraine sent consumer prices soaring, but it has since eased.
European Central Bank (ECB) vice president Luis de Guindos, a former Spanish economy minister, said last month that inflation was on the "right track” in Spain and the rest of the euro-zone. But he warned during a speech in Madrid that "the outlook, however, is surrounded by substantial risks”. "The geopolitical situation, especially the conflict in the Middle East and Russia’s war against Ukraine, poses a particular upside risk to inflation. Heightened geopolitical tensions could push energy prices and freight costs higher in the near term and disrupt global trade,” he said. The Bank of Spain forecasts inflation should remain close to 2.0 percent despite possible ups and downs in the coming months.
Spanish airline stake
In another development, Spanish airline Air Europa’s owner Globalia said Wednesday Air France-KLM was interested in taking a stake in the carrier. Business daily El Economista reported the Franco-Dutch group was considering taking a 20 percent stake in Air Europa. The cost of this operation would be "well above” the 100 million euros ($105 million) airline giant IAG paid for a 20 percent stake in Air Europa in 2022, the newspaper added. "There is an interest, just as there is interest from other airlines and funds. Nothing is sealed,” a Globalia spokeswoman told AFP. Air France-KLM said only that talks were under way with Air Europa on reinforcing their "commercial cooperation within the framework of the SkyTeam alliance.”
Air Europa, which has a fleet of around 50 aircraft, operates flights within Spain as well as from the country to cities in Europe and Latin America. It transported 11.7 million passengers last year and posted sales of 2.76 billion euros, an 18 percent increase over 2022. IAG, owner of British Airways and Spanish airline Iberia, had in February 2023 said it was to acquire Air Europa for 500 million euros from Globalia, pending regulatory approval, but it dropped its bid after the European Commission in January opened an "in-depth investigation” into the proposed deal on concerns it would reduce competition on several routes. — AFP