Spanish official inflation eases in August

Spain’s annual inflation rate dipped in August as food and fuel prices fell, official data showed on Tuesday, confirming a relaxation in inflationary pressures since spring.

Consumer prices climbed 2.7 in August from a year earlier, down from a 3.0-percent advance in July, the National Statistics Institute said in a statement.

Lower fuel and lubricant prices combined with a fall in the cost of food and soft drinks helped put the brakes on inflation in August, it said.

Inflation has been on a downward trend since striking a 30-month peak of 3.5 percent in April. The Bank of Spain predicts the rate will decline over the coming months, to reach 1.7 percent at the end of 2011.

The figures confirmed a preliminary inflation report released by the government statistician August 30.