Spanish Inflation Drops to Lowest Rate Since March 2021, Fuel Prices Lead Decline
The Consumer Price Index (CPI) in Spain recorded a decrease of 0.6% in September compared to the previous month, bringing the year-on-year inflation rate down to 1.5%. This marks the lowest figure since March 2021 when it was at 1.3%. The data was released on Friday by the National Institute of Statistics (INE), which attributed the moderation in the CPI primarily to falling fuel prices, as well as lower costs for food and electricity.
The leisure and culture sector also contributed significantly to the decline, with prices dropping more substantially than in September of the previous year. This downward trend is notable as inflation has experienced four consecutive months of decreases since the peaks observed in March, April, and May 2023, when the CPI surged to 3.6%.
Additionally, the INE provided an estimate for underlying inflation, which excludes unprocessed food and energy products. This underlying rate moderated by three-tenths in September, reaching 2.4%—which is 0.9% above the general CPI and marks the lowest level since January 2022.
In month-to-month terms, the CPI decreased by 0.6% in September compared to August, contrasting sharply with the stagnation recorded in August and the 0.2% rise observed in September 2022. The final CPI data for September is expected to be released by the INE on October 15th.
The ongoing reduction in inflation is a testament to the effectiveness of economic policy measures implemented in Spain. Furthermore, it reflects the resilience of the Spanish economy, which continues to achieve higher growth rates than the average of other major economies in the eurozone—four times higher than the eurozone average—as it navigates through price moderation. This achievement was highlighted by the Ministry of Economy, emphasizing the strength of the nation’s economic policies.
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