Spain's Inflation Rate Sees a Notable Decrease

According to the final report released by Spain's National Statistics Office (INE) on Friday, the annual inflation rate in March was confirmed at 2.3%, a decrease from February's 3%. This confirms the preliminary reading and highlights a significant slowdown in inflation.

Key Drivers Behind the Inflation Slowdown

The slowdown was primarily influenced by changes in transportation prices, which saw a modest increase of 0.9% year-over-year, and housing prices, which reached an annual inflation rate of 5.7%. Additionally, the leisure and culture sector experienced a decrease to 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, excluding unprocessed food and energy, remained steady at 2.0%.