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%, a noticeable decrease from February's 3%. This final figure aligns with the preliminary readings, indicating a steady decline in inflation.

Key Drivers Behind the Decrease

The slowdown in inflation was primarily influenced by several sectors. Transportation prices saw a modest increase of 0.9% year-over-year, while housing prices surged to an annual inflation rate of 5.7%. Interestingly, the leisure and culture sector experienced a decrease, falling 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) showed a 2.2% year-on-year increase and a 0.7% rise from December. The core inflation rate, which excludes volatile items like unprocessed food and energy, remained stable at 2.0%.