Inflation takes a dip

Betty Henderson

IN a remarkable twist, the tide has turned in favour of consumers as Spain’s inflation rate dropped below the 2 per cent mark, becoming the first nation in the Eurozone to do so.

The latest data shows that June’s Consumer Price Index (CPI) is at a low of 1.9 per cent compared to the previous year. This is the first time since March 2021 that inflation has been this low.

The decrease in inflation is due to smaller increases in fuel, electricity, and food prices compared to last year. Although prices still went up by 0.6 per cent in June compared to May, it is much lower than the 1.9 per cent increase seen in

June last year.

While the underlying inflation, which excludes energy and some food prices, remained at 5.9 per cent during June, it shows progress in controlling price increases across different parts of the economy.