Inflation falls to lowest level since 2004

14 June 2007

MADRID – Inflation fell last month to 2.3 percent – its lowest level since May 2004.

But analysts believe inflation could rise again later in the year with an expected increase in oil prices.

The National Institute of Statistics figures for the consumer price index was up 0.3pc in May, making the annual rate to fall to 2.3pc from 2.4 in April.

The drop was helped by a fall in oil prices by 3.4pc.

David Vegara, secretary of state for the economy, said he believed inflation would stay stable for most of the year, but then pick up in the final four months.

[Copyright EFE with Expatica]

Subject: Spanish news