Spain’s inflation rate shows surprise small fall in August

INFLATION in Spain stood at 10.4% in August- a 0.4% drop on July’s rate according to figures released on Tuesday by the National Institute of Statistics.

The figure is better than a market forecast of 10.9%.

The reduction is mainly down to falls in fuel prices offsetting rises in food, electricity, and hospitality.

Core inflation, which does not include food and energy prices, rose to 6.4% in August compared to 6.1% the previous month.

On a monthly basis, Spain’s consumer prices index rose 0.1% in August following a 0.3% decline in July.

Economy Minister, Nadia Calvino, said: “Inflation has started to ease and it should continue slowing in the coming months.”

She added that the government had helped to contain price rises.

Speaking to Bloomberg, economist from Madrid consultancy Afi, Maria Romero Painagua, said: “There are indications that inflation may have reached its peak, but that doesn’t mean the rate will ease right away with energy prices continuing to exert pressure.”

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