By:| Keywords : Spain, inflation
French.china.org.cn| Updated on 09-27-2024
Xinhua News Agency | 27. 09.
2024
The inflation rate in Spain decreased to 1.5% in September, the lowest since March 2021 (1.3%), according to preliminary data released on Friday by the Spanish National Institute of Statistics (INE).
The inflation rate dropped from 2.3% in August to 1.5% in September, representing a significant decline of 0.8 percentage points, the largest decrease in over a year.
The INE attributes this slowdown in price growth primarily to a reduction in the cost of fuel, food, and electricity compared to September 2023.
Core inflation, which excludes the more volatile prices of fresh food and energy, increased from 2.7% in August to 2.3% in September.
On the same day, the INE confirmed that the Spanish economy grew by 0.8% in the second quarter of the year, driven by increases in private consumption, exports, and investments.
The Spanish Minister of Economy, Trade and Business, Carlos Cuerpo, welcomed these “positive data” during an interview with Spanish national radio RNE.
He attributed the favorable statistics to effective government policies, stating they reflect “good management of the political economy in recent years.”
The minister emphasized that Spaniards are experiencing an improvement in their purchasing power, as disposable income is rising faster than prices, allowing citizens to gradually recover from the inflation crisis of 2022.
Inflation Rate in Spain Falls to 1.5% in September 2024
According to preliminary data released on September 27, 2024, by the Spanish National Institute of Statistics (INE), the inflation rate in Spain has experienced a significant decline, dropping to 1.5%. This marks the lowest level since March 2021, when it was recorded at 1.3%.
Key Statistics
- Current Inflation Rate: 1.5% in September 2024
- Previous Month: 2.3% in August 2024
- Change: Decrease of 0.8 percentage points
- Core Inflation: 2.3% in September (up from 2.7% in August)
Factors Contributing to Inflation Drop
The INE attributes this considerable slowdown in inflation primarily to a decrease in the costs of essential goods and services:
- **Fuel** prices have declined compared to September 2023.
- **Food** prices have experienced a downturn, alleviating some of the pressures on household budgets.
- **Electricity** costs have also contributed to the reduction in overall inflation.
Economic Growth Amidst Inflation Reduction
On the same day, the INE confirmed that the Spanish economy grew by 0.8% during the second quarter of 2024. This growth is credited to several positive factors:
- Increased private consumption, which reflects a growing confidence among consumers.
- Growth in exports, showcasing Spain’s strong international trade performance.
- Higher investments, particularly in infrastructure and technology sectors.
Government Perspectives on Economic Performance
Carlos Cuerpo, the Spanish Minister of Economy, Trade, and Business, expressed optimism during an interview with Spanish national radio (RNE) regarding these economic indicators. He labeled the data as “positive,” attributing the favorable results to “effective government policy.”
He stated, “These figures reflect good management of the political economy over recent years.” This sentiment was reinforced by the notion that Spaniards are gradually regaining their purchasing power as disposable income increases at a rate that outpaces rising prices, allowing citizens to recover from the inflation crisis of 2022.
Benefits of Falling Inflation
The fall in inflation has several benefits for the Spanish economy and its citizens:
- Increased Purchasing Power: With lower inflation, consumers can buy more goods and services for the same amount of money.
- Stability in Prices: A stable inflation rate can encourage long-term economic planning for businesses and households.
- Economic Growth: Lower inflation may facilitate investments, as businesses find it easier to forecast costs and revenues.
Future Outlook
While the significant drop in Spain’s inflation rate is certainly encouraging, analysts remain cautious. The dynamic nature of global economies, coupled with factors such as geopolitical tensions and supply chain disruptions, may still pose challenges to sustained economic stability.
It is vital for policy makers to monitor these trends closely, adapting their strategies as necessary to maintain economic momentum and further improve the financial well-being of Spanish citizens.
Conclusion
As of September 2024, Spain is witnessing positive changes in its economic landscape with a notable decrease in the inflation rate, coupled with robust economic growth. These developments reflect effective government policies and offer a hopeful outlook for both consumers and the economy at large.