Spain's Inflation Rate Declines

According to the National Statistics Office (INE), Spain's annual inflation rate decreased to 2.3% in March, down from 3% in February. This confirms the preliminary data and highlights a notable slowdown in inflation.

Key Drivers Behind the Slowdown

The deceleration was primarily influenced by transportation prices, which saw a modest 0.9% year-over-year increase, and housing prices, which escalated to an annual rate of 5.7%. Additionally, leisure and culture prices experienced a decline, dropping to a negative 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 since December. The core inflation rate, excluding unprocessed food and energy, remained steady at 2.0%.