Spain first major economy within EU with inflation below two percent

by Lorraine Williamson
inflation below 2%

With the drop in June, inflation in Spain has now fallen for two months in a row, after falling 0.9% to 3.2% in May. The Spanish National Institute of Statistics (INE) announced this on Wednesday. 

Spain’s consumer price index (CPI) rose 0.6% in June from the previous month. But the year-on-year figure was down 1.3% to 1.9%. This is the lowest level since March 2021.  

Also read: Inflation in Spain lowest since early 2021

Which products became cheaper or more expensive? 

Statistics attributed the moderation of inflation in June to the lower increase in fuel prices and lower prices of food products such as fruits, bread and cereals and meat, legumes and vegetables. Prices of milk, cheese and eggs remained stable compared to last year’s increase, while prices of oil and fat rose compared to the June 2022 decline.  

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Core inflation 

Core inflation (excluding unprocessed food and energy products) fell 0.2% to 5.9%. This put core inflation 4% above the overall CPI, which is the lowest level since June 2022.  

According to the Ministry of Economy and Digital Transformation, the measures taken reduced inflation by almost 9% in less than a year.  

Spanish inflation below ECB reference level 

‘Spain has become the first country among the major eurozone economies to reduce inflation to below 2%, the ECB’s reference level,’ said the department’s Nadia Calviño.  

According to the ministry, the June inflation figures confirm the moderation in the prices of fuel, electricity and especially food and non-alcoholic beverages, which fell more than one and a half points year-on-year. A price drop for pulses and vegetables followed in June. “This positive development confirms the effectiveness of the main tax-reducing measures and subsidies,” the Spanish Ministry of Economy stressed. 

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