Spain Inflation Weakest Since 2016

Spain’s consumer price inflation slowed as initially estimated to the lowest since mid-2016, final data from the statistical office INE showed Thursday.

Consumer prices fell 0.7 percent on a yearly basis in April, as estimated, after staying flat a month ago. This was the biggest fall since June 2016, when prices were down 0.8 percent.

At the same time, core inflation held steady at 1.1 percent.

Meanwhile, month-on-month, consumer prices gained 0.3 percent, in contrast to a 0.4 percent drop in March. The rate came in line with the estimate published on April 30.

The annual fall was largely driven by a 6.8 percent decrease in transportation and 6.6 percent fall in housing costs. Meanwhile, food and non-alcoholic beverages prices advanced 4 percent.

Inflation, based on the harmonized index of consumer prices declined 0.7 percent, reversing a 0.1 percent rise in March. The annual rate was revised from 0.6 percent. A similar faster drop was last seen in July 2016.

On a monthly basis, HICP inflation eased to 0.4 percent from 0.6 percent. The monthly rate matched preliminary estimate.

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