Spanish inflation at 15-year high

Prices in Spain rose at their fastest annual rate for 15 years in July, driven by rising food and fuel costs.

The annual inflation rate climbed to 5.3% in July, up from 5% in June.

Transport costs were 10.6% higher than a year earlier, the National Institute of Statistics said, with food prices up 7% compared with July 2007.

Spanish inflation is above the eurozone average of 4.1%, but recent falls in the price of crude oil could bring the rate down.

Spain's Economy Minister Pedro Solbes said the rate of inflation could drop to about 4% by the end of the year as crude prices have declined.

Later on Wednesday Spain set out a number of economic reforms aimed at tackling the cooling economy, following an emergency meeting.

Prime Minister Jose Luis Rodriguez Zapatero had interrupted his holidays to attend the meeting with Mr Solbes and other cabinet members.

The plan, yet to be finalised, included a 20m-euro package ($30m; £15.9m) to help families access finance for mortgages and to help smaller firms among others.