Spain's Inflation Rate Declines

In a recent report released by Spain's National Statistics Office (INE), the annual inflation rate for March was confirmed at 2.3%. This marks a decrease from February's 3%, aligning with preliminary estimates. The detailed analysis reveals a nuanced picture of Spain's economic landscape.

Key Drivers Behind the Slowdown

The slowdown in inflation was primarily influenced by several sectors. Transportation prices saw a modest year-over-year increase of 0.9%, while housing prices surged to an annual inflation rate of 5.7%. Conversely, the leisure and culture sector experienced a decline, dipping into negative territory at -0.3%.

Monthly and Core Inflation Insights

On a monthly basis, consumer prices edged up by 0.1%. The Harmonized Index of Consumer Prices (HICP) reported a 2.2% year-on-year increase and a 0.7% rise from December. Notably, the core inflation rate, which excludes volatile items like unprocessed food and energy, remained steady at 2.0%.