Inflation slows on back of lower fuel costs

Spanish inflation eased in March owing mostly to lower fuel costs, official figures showed on Wednesday.

Consumer prices climbed by 2.6 percent over the year to March, against an annualized rise of 2.8 percent in February, said a provisional report by the National Statistics Institute.

"This result is mainly a consequence of the decrease in the prices of fuels and lubricants," it said in a statement.

Consumer prices rose by 0.4 percent in March from the previous month.

Spanish inflation shot higher after the government raised the top rate of sales tax to 21 percent from 18 percent in September to boost state revenues and help curb the swollen public deficit.

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Spain’s inflation soars to 29-year high

Spanish inflation accelerated in November to its highest level in nearly three decades on the back of rising food and gas prices, official data showed Monday.

black friday spain
Black Friday sales can't disguise the fact for shoppers that life in Spain is getting increasingly expensive. Photo: GABRIEL BOUYS / AFP

Consumer prices jumped by 5.6 percent, up from a 5.4 percent increase in October, according to preliminary figures from national statistics institute.

That is its fastest pace since September 1992, when the rate was 5.8 percent.

The surge in inflation in the eurozone’s fourth-largest economy was due largely to a spike in food prices, followed by higher gas prices, the statistics office said.

Electricity costs, however, declined slightly after a month-long acceleration, it added.

As in other European Union nations, inflation in Spain has risen since the start of the year after consumer prices declined during most of 2020 due to the economic impact of pandemic lockdowns.

In October, eurozone inflation reached 4.1 percent, well above the European Central Bank’s target of two percent and equal to a high set in July 2008.

But the bank believes eurozone inflation will peak in November and is set to gradually slow next year as supply bottlenecks and the energy crunch ease, board member Isabel Schnabel said earlier this month.

Investors worry central banks will withdraw their stimulus measures sooner than expected to tame inflation.