Spanish official inflation falls

14th May 2013, Comments 0 comments

Spanish inflation fell in April as energy prices slumped and domestic demand evaporated in a job-destroying recession, official data showed Tuesday.

Consumer prices over the year to April rose by 1.5 percent, the lowest level since 2010, after climbing 2.6 percent the previous month, the National Statistics Institute said.

The figures, which confirmed a preliminary report issued two weeks earlier, showed month-on-month prices were up just 0.1 percent.

Falling fuel and electricity prices dragged down the annual inflation rate, which was adjusted to smooth out the impact of seasonal variations, the institute said.

Spain's inflation rate surged when the government raised the sales tax in September last year so as to boost state revenues and help curb the annual public deficit.

But prices have been held down by weak demand as the economy shrinks and the unemployment rate towers above 27 percent.

© 2013 AFP

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