Spain Reports Deflation for Nine Straight Month


Consumer prices in Spain fell 0.7 percent year-on-year in March of 2015 from a 1.1 percent drop in February and matching preliminary estimates. Final figures showed the decline in the cost of fuel and lubricants eased, cost of housing decreased and prices of food and non-alcoholic beverages were higher.

Year-on-year, cost of transport decreased by 3.5 percent, compared to a 5.6 percent decline reported in February. Cost of leisure and culture also declined by 0.4 percent. Prices of food and non-alcoholic beverages increased by 0.4 percent, following a 0.2 percent rise in the previous month. In contrast, housing cost decreased by 2.0 percent from a 1.9 percent decline in February, due to lower prices of gas, electricity and other services.

Core inflation was recorded at 0.2 percent for the third consecutive month.

On a monthly basis, consumer prices rose 0.6 percent in March after increasing 0.2 percent in February. Price increases were reported for: transport (+2.2 percent); clothing and footwear (+4.3 percent); leisure and culture (+0.8 percent) and hotels, cafe and resturants (+0.3 percent). In contrast, prices of food and non-alcoholic beverages declined by 0.5 percent.

The EU-harmonized index decreased 0.8 percent year-on-year but rose 2.0 percent month-over-month.

Spain Reports Deflation for Nine Straight Month


INE l Rida Husna l rida@tradingeconomics.com
4/14/2015 12:15:53 PM