Spain's 2008 inflation drops to 1.5 percent

6th January 2009, Comments 0 comments

The lower-than-expected annual inflation rate is the lowest inflation rate since January 1999.

MADRID – Spanish 12-month inflation fell to 1.5 percent in December from 2.4 percent in the previous month, its fifth consecutive monthly decline, provisional official data showed Monday.

If the figure is confirmed when the national statistics institute issues its final data on 15 January, the 12-month inflation rate will be the lowest since January 1999 when it hit 1.4 percent.

Spain's 12-month inflation rate in December 2007 came to 4.3 percent.

The annual inflation rate has fallen each month after hitting 5.3 percent in July, which was the highest since January 1997, due to the slowing economy and lower oil prices.

In November Economy Minister Pedro Solbes predicted the annual inflation rate would likely slow to around 2.0 percent in December and continue to fall to below 1.0 percent by July 2009.

[AFP / Expatica]

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