SPAIN’S Economy Minister, Nadia Calviño, says the annual inflation rate will stay at around 7% for the rest of the year before falling next year.

In an interview with Radio Nacional on Tuesday, Calviño also revealed that the government and banks had reached a deal- in principle- on mortgage relief measures that could help over a million households.

Inflation fell to 7.3% in October compared to a peak of over 10% in July- figures not seen since the mid-eighties.

Economists are projecting a 4% rate by mid-2023.

Nadia Calviño said: “This is good news not only because it improves the sustainability of the economy and eases the situation of households and businesses, but because it will help the European Central Bank which would ease up on increasing interest rates.”

Those rates have been impacting on people with mortgages and Calviño said that the government and banks have come up with a package of mortgage relief.

The agreement, subject to final talks with the banks, would include extending loan repayment periods for over a million vulnerable mortgage holders in addition to providing help for middle-class families.

Mortgages would be able to be restructured with lower interest payments and grace periods to avoid penalty charges for non-payment.

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