Spanish Inflation Slows on Lower Energy Prices

By Ed Frankl

Spanish inflation fell in February on lower electricity prices, dipping below 3% for the first time since August.

The country's consumer-price index rose by 2.9% on an annual basis in February, down from a 3.5% rise in January, according to figures published Thursday by national statistics agency INE.

The rate, which is harmonized to European Union standards, was a little lower than expectations that inflation would tick down to 3.0%, according to economists polled by The Wall Street Journal. It remains, however, above the recent low of 1.6% in June 2023 and the 2% target of the European Central Bank.

In national terms, inflation dipped to 2.8% from 3.4% in January, mainly driven by a drop in electricity prices, as well as more stable food prices, INE said. However, fuel prices increased on year, when they fell in the same month of 2023, it added.

Meanwhile, core inflation, which strips out the more volatile effects of unprocessed-food and energy prices, slowed again to 3.4% in February from 3.6% last month, again in national terms, the data said.

Data published earlier Thursday showed inflation slowed in France in February. Figures for the 20-nation euro area are due to be published on Friday.

Write to Ed Frankl at edward.frankl@wsj.com

(END) Dow Jones Newswires

February 29, 2024 03:14 ET (08:14 GMT)

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