Prices fall in Spain for seventh month running

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Spanish consumer prices fell for the seventh consecutive month in September by 1.0 percent.

Madrid – Spanish consumer prices fell for the seventh month running in September, dropping 1.0 percent over 12 months, official figures showed on Tuesday.

In August, prices plunged 0.8 percent.

That followed a fall of 1.4 percent in July, 1.0 percent in June, 0.9 percent in May, 0.2 percent in April and 0.1 percent in March, which was the first 12-month drop since the INE statistics office began tracking inflation in 1961.

Spanish inflation, which had generally been higher than the eurozone average over the past decade, is now slowing more sharply than the rest of the region as its economy slumps.

But the Socialist government so far contends that Spain is not entering a period of deflation, characterised by a prolonged period of falling prices, which can be harmful to the economy as it can lead consumers and companies to hold back on spending as they wait for even better deals.

Spain entered its first recession in 15 years at the end of 2008 and unemployment has soared as the global credit crunch worsened a correction that was already underway in its once booming housing sector.

The INE statistics office, which released Tuesday's provisional figures, does not issue month-to-month changes. It is to publish the definitive figure for September on 14 October.

AFP / Expatica

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