4.9%: Inflation in Spain reaches its highest level in 3 years

WHAT HAPPENED

Inflation in Spain rose to 4.9% annually in September, up from 4.3% in August. Gasoline and diesel increased by 21.6% in a year, while core inflation reached 3.1%.

WHY IT MATTERS

Higher oil prices, driven by tensions between the United States and Iran, made fuel more expensive. This first impacts transportation, travel, and restaurants, and may later raise other prices. If it continues, the European Central Bank could keep rates high and make mortgages and new loans more expensive.

AND FOR YOUR PORTFOLIO

For an individual, something that cost 100 euros a year ago now costs about 105 today. Savings buy less, while a fixed-rate debt loses weight in real terms. High rates also make new loans more expensive and can dampen consumption and housing.