MADRID: Consumer prices in Spain fell by 0.3 percent during August and the rate of inflation currently stands at -0.4 percent, the Spanish National Statistics Institute (INE) confirmed here the other day.
That 0.3 percent fall represents a fall of 0.5 points from August 2014, when prices were rising by 0.1 percent. Meanwhile the underlying rate of inflation, which does not include food or energy prices, dropped by 0.1 points to 0.7 percent.
The main reason for the fall in prices is the reduction in transport costs, driven by a drop in the cost of fuel and lubricants, while there was also a 1.3 percent drop in housing costs and in the price of electricity.
Meanwhile the end of the summer sales in August, when shops lowered their prices in order to sell off remaining stock, was also a factor.
The above were slightly offset by small rises in non-alcoholic drinks, the cost of hotels, cafes and restaurants, as well as in the culture and leisure sectors.
