Energy costs push Spanish industrial prices to record high in November

High-voltage power lines and an electricity pylon are seen near Pedrola
High-voltage power lines and an electricity pylon are seen near Pedrola, Spain, December 12, 2021. REUTERS/ Albert Gea

Dec 22 (Reuters) - Spanish industrial production prices in November hit a record high for the second month in a row, pushed up by soaring power costs, the Spanish National Statistics Institute (INE) said on Wednesday.

Prices jumped 33.1% year on year in November, the fastest annual pace since the data series began in January 1976, INE said. The 12-month rate was 31.9% in October.

Energy costs drove most of the increase in the industrial prices index, with an 88.3% jump in November from a year earlier, INE said, boosted by increases in the prices of gas production, distribution and oil refining.

Electricity prices dipped 0.2% in November after registering the steepest increase the previous month. December data so far showed they accelerated again.

Energy Minister Teresa Ribera said on Tuesday "the prospects for wholesale electricity prices - which will reach a new record tomorrow - are not particularly promising".

The government has passed tax cuts in a bid to limit the price impact on consumers' electricity bills.

Industrial production price hikes are generally partly transferred by companies to customers and end up fuelling inflation. In recent months, energy prices and inflation have rocketed in Spain and other European countries due to disruptions in global supply chains.

Spain's inflation stood at a 29-year-high in November for the second month in a row, propelled by food and fuel prices, final monthly data from INE showed last week. read more

Reporting by Aida Pelaez-Fernandez Editing by Inti Landauro and Mark Potter

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