The CPI rose 4.5% in August in the Basque Country and 4.2% in Navarre

The National Institute of Statistics (INE) has confirmed the upturn in prices in August, which is at its highest level in three years, and, above all, the increase in fuels has led to the upturn in the CPI in the South Basque Country.

The increase in prices in the Basque Country has been remarkable, with inflation rising to 4.5% (eight tenths higher than in July), making the Basque Country the sixth community with the highest year-on-year rate, with prices rising by 3.8% in the first eight months of the year.

By territory, the largest increase was recorded in Bizkaia (4.9 per cent), followed by Álava (4.5 per cent), while Gipuzkoafell below 4 per cent (3.9 per cent).

According to data published by the INE, compared to the month of July, the transport sector was the most expensive (3.1%), followed by restaurants and hospitality (1.3%), while clothing and footwear (-0.8%) fell the most.

In Navarre, the CPI has fallen short of the Basque Country and the Spanish State average of 4.3%, although the final figure of 4.2% in August confirms the upward trend caused by fuel prices, which have risen by 0.5% in the Foral Community compared with the previous month, to 3.5% since the beginning of the year.

In this context, it should be noted that fuel premiums in the Southern Basque Country will end in October. The Spanish Government provides aid of 20 cents per litre of diesel and 5 cents per litre of petrol. In view of the August CPI data and price developments, it will be necessary to analyse whether the Madrid Government is making any proposals to maintain this measure.