Spanish Finance Minister Pedro Solbes said Tuesday that Spanish consumer price inflation could accelerate 5% in the coming months if fuel prices continue rising.
"Some analyses and forecasts point to 5%, considering the evolution of prices last year," Solbes said in an interview with Spain's state-owned radio network Radio Nacional de Espana. "An increase of that kind may take place if oil prices continue rising."
He added that his government continues to forecast the inflation rate will fall to 3.5% later this year if oil prices remain at current levels.
Spanish consumer prices rose at an annual rate of 4.7% in May and 4.2% in April.
Soaring oil and food prices have pushed euro-zone consumer prices to record highs in recent months, putting pressure on the European Central Bank to keep its main interest rate at 4% despite evidence of slowing economic growth.
The ECB aims to keep the euro-zone inflation rate under 2% although it has been running at over 3% for several months.