Spanish inflation eased in March to its lowest level since October as rainy weather boosted hydro power production and drove down electricity prices, preliminary official data showed on Friday.
Consumer price rises in the European Union’s fourth-largest economy slowed to 2.3 percent on an annual basis, down from 3.0 percent in February, the National Statistics Institute said.
“This significant drop is mainly due to the fall in electricity prices, as a result of heavy rainfall, and the fall in fuel prices,” the economy ministry added in a separate statement.
March’s figure was the lowest since October, when annual inflation hit 1.8 percent, and it put an end to five consecutive monthly increases.
Socialist Prime Minister Pedro Sánchez welcomed the drop in inflation, calling it “a magnificent figure” which is “a clear success” of his government’s economic policies.
The European Central Bank, which has a longstanding inflation target of 2.0 percent for the eurozone, cut interest rates in January after an overall slowdown in inflation in recent months
Heavy rains which fell across Spain during much of March will end the severe drought the country has faced for more than three years, according to the national meteorological agency.
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