Inflation in Spain decelerated more than expected in December, suggesting an easing of price pressures across the eurozone.
Spanish consumer prices increased at their slowest annual pace to 5.8% in December as electricity prices were lower this year than the last year, shows data released by National Statistics Institute (INE) on Friday.
The core inflation, excluding volatile fresh food and energy prices, stood at 6.9% year-on-year, up from 6.3% recorded a month ago, the INE data showed.
In November, Spain recorded the lowest inflation in the 27-member European Union at 6.7%, after culminating to approx 11% in July.
“We make a very positive reading. Five points in five months … Core inflation is taking longer to come down because it took longer to go up,” Economy Minister Nadia Calviño said in an interview with broadcaster SER.
European Union-harmonized 12-month inflation of Spain came in at 5.6% in December, lower than 6.7% in November and below the expectation of 6.0%, according to the analysts polled by Reuters.
The relief measures in the form of free rail travel and discounts on urban transport, capping increase of rents and energy bills seemed to have paid off and influenced price growth.
Spain passed its third major package of inflation-easing measures earlier this week, which included a VAT reduction on staples like bread and milk and a €200 bonus for households earning less than €27,000.