Inflation dips to lowest level since May 2005

28th September 2006, Comments 0 comments

28 September 2006, MADRID — Inflation fell to 3 percent in September- its lowest level since May 2005, according to figures released on Thursday.

28 September 2006

MADRID — Inflation fell to 3 percent in September- its lowest level since May 2005, according to figures released on Thursday.

The new figure was eight points less than in August, said analysts at the Spanish National Statistics Institute said.

The latest inflation figure, which is 'harmonised' to other European Union levels, shows how prices have changed during September.

Government sources said it was the best inflation figure since their socialist administration came to power in March 2004.

They said it was an "excellent" indicator of how the economy was going.

The fall in the price of petrol, now at USD 60 per barrel of crude after a rise to USD 80 a barrel in August, and the fall in the price of foods, particularly staples like olive oil and potatoes are behind the drop in inflation.

[Copyright EFE with Expatica]

Subject: Spanish news

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