Spain confirms upward inflation trend

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It was the third straight monthly increase in Spain's European Union-harmonised consumer price index.

Madrid – Spanish 12-month inflation rose 1.1 percent in January, official data showed on Friday, confirming an end to falling prices which had fuelled fears of deflation, official data showed Friday.

It was the third straight monthly increase in Spain's European Union-harmonised consumer price index, following a rise of 0.9 percent in December and 0.4 percent in November, the National Statistics Institute said.

Prior to that, the 12-month rate of inflation had been negative since March when Spain became the first country in the eurozone to report an annual decline in consumer prices, as a result of the global economic downturn and lower energy prices.

The drop in prices had raised concerns that Spain was entering a period of deflation, a downwards spiral in which consumers hold back on spending as they wait for even better deals and retailers cut prices in hopes of boosting sales.

But Spanish authorities have repeatedly downplayed the risk of deflation, arguing that the decline in prices largely reflected changes on the oil market.

AFP / Expatica

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