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Inflation in Germany Reaches 40-Year High; Inflation in Spain Reaches 37-Year High

According to the German Federal Statistical Office (Destatis), the consumer price index (CPI), rose by 7.3% year-on-year in March. This was the highest level since 1981, following a 5.1% gain in February.

The consumer price index was driven by a rise in energy prices, which soared by almost 40% in March. In addition, supply chain bottlenecks continue to be cited as a reason. Due to the never-ending COVID cutbacks in Germany, the German Council of Economic Experts (SVR) has forecast that inflation in Germany will rise from 2.4% to 6.1% this year.

The Spanish Statistics Institute (INE) announced that the Consumer Price Index (CPI) rose 9.8% in March, the highest level in 37 years, compared to 7.6% in February.

The CPI was driven by an increase in food and energy prices, including electricity.

Core CPI (excluding food and energy) rose by 3.4% in March, reaching its highest level since September 2008.

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