SPAIN’S annual inflation rate has fallen to 7.3% in October according to preliminary figures issued on Friday by the National Statistics Institute(INE).
That’s a 1.6% drop on the September figure and is the lowest rate since January, before the war in Ukraine.
It’s the third consecutive month where inflation has fallen, something that has not happened since 2020.
Core inflation, which does not include variable food and energy prices, stands at annual rate of 6.2%- the same as September.
Finance Minister, Nadia Calviño, said: “This represents a reduction by a third of the July peak and is a good indicator of the downward trend for the next few months.”
Falling energy prices have been behind the October fall.
The price of natural gas has dropped due to the exceptionally warm weather reducing demand which has resulted in an increase in reserves.
That’s led to electricity prices going down with the INE also saying that cheaper ‘new season’ clothing and footwear has helped the fall in inflation.
Free rail travel and reduced bus prices also played their part.
Economist, Matilde Mas, from the University of Valencia told the El Pais newspaper:
“We come from a year of surprises but so long as nothing unexpected happens, the trend is clearly towards a slowdown in inflation.”
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