Alex Trelinski
SPAIN’S inflation rate fell by 0.2% to 3.4% in June, with the slowest rate of food inflation since December 2021- standing at 4.2%.
The National Institute of Statistics (INE) said on Friday that the overall rate come down due to lower fuel and food costs compared to a year ago.
It reported that core inflation(which does not include volatile energy and fresh food prices) stood at 3% year-on-year.
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Among the products that are cheaper than a year ago are milk, butter, flour, pasta and chicken.
Oils – with the exception of olive oil – registered the largest fall of 14.8% compared to June 2023.
Vegetables and legumes reported a 4.5% drop on May’s figures.
The Economics Ministry said the figure show ‘the capacity of the Spanish economy to produce high economic growth in the euro zone with a moderation in prices and the maintenance of measures to continue reducing food prices’.
VAT reductions on basic food were introduced at the start of 2023 and have been extended until sometime later this year.
Outside the food sector the biggest price hikes were were recorded by maritime transport (26.9%) followed by domestic tourist packages (21.7%).
The largest price falls were recorded in the prices of mobile phones (8.3%), and personal computers (7.9%).
