Alex Trelinski
INFLATION in Spain has dipped to below 2% for the first time since March 2021 according to provisional June figures released on Thursday by the National Statistics Institute.
Inflation fell by more than one percentage point in June, reaching 1.9% year-on-year, down from 3.2% in May, with fuel, electricity and food price increases easing.
The preliminary figure brings Spanish inflation in line with the 2% target set by the European Central Bank(ECB) for the euro zone.
The June inflation rate puts Spain in a better place than most of its neighbours within the euro zone where inflation reached 6.1% year-on-year in May.
It’s a significant change from less than a year ago when inflation in Spain hit 10.8% in July 2022- its highest level since 1985.
Core inflation, which is seasonally adjusted and excludes energy, fell by 0.2 points to 5.9% year-on-year.
On a monthly basis, overall consumer prices moved up 0.6% percent in June after remaining flat in the prior month.
At the end of December, the government axed IVA on a range of basic foodstuffs in a measure that was extended this week until the year’s end.
The move raised to almost €50 billion the overall amount released by the government to help those struggling with soaring inflation and runaway food and energy prices.
READ MORE:
- Inflation falls in Spain in May, but remains stubbornly high for foodstuffs
- Inflation is what people worry about most in Spain- says survey
- Inflation and higher interest rates cause big fall in home sales in Spain
