Inflation slows due to the effect of rain on energy prices

BarcelonaThe fall in electricity and fuel prices is giving inflation a break. The consumer price index (CPI, the indicator that measures the cost of living) for March fell by seven-tenths of a percentage point compared to the previous month, to 2.3% year-on-year, according to advance data published this Friday by the National Statistics Institute (INE). This drop in energy prices compared to a year ago is also explained by the heavy rains in recent weeks in Spain. Leisure and cultural prices also rose less than in March 2024.

Thus, the CPI has retreated after five consecutive months of increases and has registered its steepest drop since the summer. In monthly terms, inflation increased by 0.1% compared to February. With this increase, it has now accumulated six consecutive months of increases. "Friday brings good news for families' finances," said Spanish Economy Minister Carlos Cuerpo in a post on X.

On the other hand, core inflation, which does not take into account the most volatile products - such as fresh food or energy - is falling once again: it fell two-tenths and now stands at 2%, the lowest rate since December 2021, more than three years ago, as well as.

The president of the Spanish executive, Pedro Sánchez, described the drop in inflation this March as "magnificent" and assured that "if it demonstrates anything, it is the clear success of the economic policy and, from an energy point of view, also, on the part of the Spanish government." During his speech at an event on European funds organized by the digital media Eldiario.esThe Socialist leader noted that "Spain's extraordinary economic performance has been reflected in the everyday reality of ordinary people."

This Friday's preliminary figures do not include indicators for the autonomous communities. The INE will publish the final March CPI data in mid-April, which will include the figure for Catalonia.