Inflation continues to fall in Spain

Madrid: Prices in Spain are continuing their downward trajectory, with the rate of inflation falling to 7.3 per cent in October from 8.9 per cent in September, according to the preliminary data published by the country’s Statistical Office (INE).

This is the lowest level in eight months, and 3.5 per cent below the 28-year high of 10.8 per cent registered in July, Xinhua news agency quoted the INE as saying on Friday

Since then, the inflation rate has fallen for three consecutive months, with a drop of 0.3 percentage points in August, 1.6 percentage points in September and another 1.6 percentage points in October.

The INE has attributed the reduction to falling electricity costs, and also (to a lesser degree) to cheaper gas prices.

This Friday, the cost of electricity in Spain fell to 112.89 euros per Megawatt hour (MW/h), 1.37 per cent lower than the cost on Thursday and considerably lower than the cost on March 8, when it reached 544.98 euros per MWh.

There has also been a reduction in the cost of clothing and footwear, due to the arrival of the new season.

Meanwhile, the level of core inflation, which includes the cost of goods and services but does not include more volatile costs such as fresh food and energy, remained steady at 6.2 per cent.