Spain's Inflation Declines to 2.3% in March Amid Falling Electricity Prices
The Consumer Price Index shows a significant drop, attributed to reduced electricity and fuel costs.
The Consumer Price Index (CPI) for March, released by the National Institute of Statistics (INE), indicates a decrease of seven-tenths from the previous month, now standing at 2.3%.
This figure marks the lowest inflation rate since October 2024, when it was recorded at 1.8%.
The decline is primarily attributed to a decrease in electricity prices due to abundant rainfall, as well as lower costs for personal vehicle fuels.
Additionally, the rise in prices for leisure and culture was less significant compared to March of the previous year.
Data from the Electricity Market Operator (OMIE) reflects that the average wholesale electricity price in March has fallen to €57.4 per megawatt-hour, down from €108.3 in February and €96.7 in January.
However, this price remains significantly higher than the average of €20.3 observed in March 2024.
Core inflation, which measures price levels excluding energy and fresh food, also continued to decrease, dropping two-tenths to 2%, the lowest level in over three years, specifically since December 2021. This rate aligns with the European Central Bank's (ECB) target of stabilizing inflation around 2%.
This decrease in interannual CPI in March ends a five-month streak of rises.
Economy Minister Carlos Cuerpo commented on the positive news for family finances, noting the significant reduction in general inflation and the consistent decline in core inflation.
On a monthly basis, the CPI increased by 0.1% from February, three-tenths less than the increase recorded in February.
Consequently, inflation has accumulated six months of consecutive monthly increases.
In contrast, the harmonized Consumer Price Index (HICP), which is used for comparisons at the European Union level, also saw a decrease of seven-tenths in March on an interannual basis, now at 2.2%, with a monthly rise of 0.7%.
The estimated core inflation of the HICP stands at 2% for March.
Final CPI data for March will be published by the INE on April 11.
This figure marks the lowest inflation rate since October 2024, when it was recorded at 1.8%.
The decline is primarily attributed to a decrease in electricity prices due to abundant rainfall, as well as lower costs for personal vehicle fuels.
Additionally, the rise in prices for leisure and culture was less significant compared to March of the previous year.
Data from the Electricity Market Operator (OMIE) reflects that the average wholesale electricity price in March has fallen to €57.4 per megawatt-hour, down from €108.3 in February and €96.7 in January.
However, this price remains significantly higher than the average of €20.3 observed in March 2024.
Core inflation, which measures price levels excluding energy and fresh food, also continued to decrease, dropping two-tenths to 2%, the lowest level in over three years, specifically since December 2021. This rate aligns with the European Central Bank's (ECB) target of stabilizing inflation around 2%.
This decrease in interannual CPI in March ends a five-month streak of rises.
Economy Minister Carlos Cuerpo commented on the positive news for family finances, noting the significant reduction in general inflation and the consistent decline in core inflation.
On a monthly basis, the CPI increased by 0.1% from February, three-tenths less than the increase recorded in February.
Consequently, inflation has accumulated six months of consecutive monthly increases.
In contrast, the harmonized Consumer Price Index (HICP), which is used for comparisons at the European Union level, also saw a decrease of seven-tenths in March on an interannual basis, now at 2.2%, with a monthly rise of 0.7%.
The estimated core inflation of the HICP stands at 2% for March.
Final CPI data for March will be published by the INE on April 11.
Translation:
Translated by AI
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
