Spanish Inflation now at its highest in 11 years

As a result of high energy costs and soaring oil prices, inflation in Spain accelerated in May to the fastest pace for 11 years.

Consumer prices are up 4.7 percent from last year and it is the pace of inflation that is further undermining both consumer and business confidence in the country.

Over the last couple of years of house price inflation, Spain’s housing market has gone into much publicized decline which has had a significant impact on Spain’s macroeconomic climate as the sector accounted for 10 percent of GDP and 13 percent of the labour market.

It is not all doom and gloom as the latest figures do offer a positive outlook.

Verdict Research has said that there will be a number of opportunities in Spain’s €218bn retail market.

This gain is likely to be realized as a result of liberalization of pharmacies regulations as so this may offer significant growth avenues in the country.

Furthermore there may be a new lead in the form of property as ING Real Estate are planning a huge development outside of Madrid, as they see it as a prime growth opportunity.

So as large multinationals, retailers and private equity firms are willing to invest in Spain, it seems as the economic problems that the country has faced thus far might be over.

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