Inflation in Spain dips below 2% mark with energy costs falling

SPAIN’S inflation rate has fallen to below 2% according to preliminary May figures published by the National Statistics Institute(INE) on Friday.

It now stands at an annual figure of 1.9%- 0.3% down on April’s rate.

The fall was mainly down to a reduction in leisure and cultural prices as well as transportation costs, the INE said.

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Though electricity prices spiked for a time after the late April blackout, energy costs are continuing to fall.

The latest figure continues the trend of inflation slowing down in Spain and is the third successive month to record a reduction.

Prime Minister Pedro Sanchez welcomed the news, posting on social network X that his ‘government is delivering’.

“We are achieving growth while easing price pressures, despite global uncertainty,” he added.

Core inflation, which excludes volatile fresh food and energy prices, fell to 2.1%, some three-tenths less than in April.

The Economy Ministry said in a statement: “The Spanish economy continues to show a great capacity to combine a reduction in inflation with one of the highest growth among developed countries, which is especially relevant in the current situation of high international uncertainty.”