(Bloomberg) -- Spain's core inflation is likely to continue accelerating, according to the country's largest domestic bank.
The government is taking the right measures to contain energy prices but “inflation is something we need to fight and it's not a fight that is won in a week, a month or so, so it's going to be with us for some time,” CaixaBank SA Chief Executive Officer Gonzalo Gortazar said in an interview Friday with Bloomberg TV. “We still have some room for further increases in core inflation” after having been “very high” April, he said.
Although Spanish inflation slowed to 8.3% in April from the previous month as power prices eased, the country's core inflation rate, which doesn't take into account electricity, rose to 4.4%. The government this week announced an agreement with the European Union to cap the price of gas used for electricity production, a move it expects to have an immediate effect on inflation once it's put in place next week.
Earlier on Friday, CaixaBank reported earnings that beat analyst estimates.
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