Spain: more deflation, stable growth
Spanish inflation rate hit -0.5%, as prices in the country’s shops kept going down in August, according to the Spanish national institute of statistics (Ine).
The Spanish consumer prices index slid to -0.5% year-on-year for August. If the flash estimate of the CPI is confirmed, it would imply a decrease of one fifth in its annual change, as in July the change was of -0.3%.
The drop, which was reported as being the weakest in five months, was mainly justified by the decrease in prices of fuels and lubricants, as compared to the increase registered in 2013, Ine said.
However, the good news came from the Q2 growth figure, which was confirmed at +0.6%. Ine has confirmed that its economy overtook the eurozone in the last quarter, with its GDP figure beating Germany (which contracted by 0.2%), France (which remained flat), and the eurozone average (+0.1%) in April-June.