In March, Spanish inflation decreased to a 20-month low
In March, Spanish inflation decreased to a 20-month low, according to data released by the National Statistics Institute (INE). The consumer price index (CPI) rose by just 0.1% year-on-year, down from 0.6% in February. The drop in inflation was largely due to falling energy prices, which were down 5.9% year-on-year. This was partly offset by higher food prices, which rose by 1.5% year-on-year. The decline in inflation is good news for Spanish consumers, who have been hit hard by the economic crisis. With prices rising at a slower rate, households will have more money to spend on other goods and services. However, the low inflation rate is also a concern for the European Central Bank (ECB), which has been struggling to boost inflation across the eurozone. The ECB has set a target of just under 2% inflation, but the rate has remained stubbornly low in recent years. The ECB has responded by cutting interest rates to record lows and launching a massive bond-buying program. However, these measures have yet to have a significant impact on inflation. The low inflation rate in Spain is also a reflection of the country's weak economic growth. Despite a recent uptick in activity, the Spanish economy remains one of the weakest in the eurozone. The government has been implementing a series of reforms aimed at boosting growth and creating jobs. However, progress has been slow, and many Spaniards continue to struggle with high levels of unemployment and low wages. Overall, the drop in inflation is a positive development for Spanish consumers, but it also highlights the challenges facing the ECB and the Spanish government as they seek to revive the country's economy.