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Economic contraction in Spain continues for a fifth straight quarter while austerity measures kept Inflation at a 17-month high. Economy, Inflation, Unemployment & Austerity Measures are all moving sharply in Spain, albeit in the undesired direction. Recession in Spain extends deeper into the third quarter as Inflation continues to stay high in October. Value-added tax rose in September as part of the government’s 100 billion-Euro austerity program, pushing up prices. Austerity program to cut the public deficit is also pushing up living costs as prices rose sharply in October, piling pressure on the government to revive a paralyzed economy as it stalls over requesting aid. Prime Minister Mariano Rajoy has already introduced austerity measures worth over 60 billion euros ($77.6 billion) to the end of 2014 to try to deflate the deficit to below 3% of GDP from 9% last year. But rising social security costs, unemployment benefits and interest payments on public debt are undermining his cost-saving measures. Spain, Eurozone’s fourth largest economy has again moved to the forefront of the bloc’s fiscal crisis on concern that mounting debts owed by its regional administrations could make public finances unsustainable. The weakening Euro in the meanwhile also slipped further on doubts over whether Greece, the country that triggered Europe’s debt crisis, can agree to a deal on new austerity measures and its international lenders can figure out how to make its huge debts sustainable.