Final data provided by the National Statistics Institute (INE) showed that consumer price growth slowed to 2.3% per year in March from 3.0% per year in February. Economists also expected a 2.3% increase. The inflation rate decreased for the first time in 5 months and has reached its lowest level since October 2024.
The key factors in slowing inflation were a sharp slowdown in housing and utility costs (5.7% vs 9.8% in February), particularly those of electricity (12.8% vs 28.1%). Prices for transportation fell 0.9% after rising 0.3% in February, while prices for recreation & culture decreased 0.3% after increasing 1.4% in February.
The data also showed that on a monthly basis, the CPI rose 0.1%, as expected, after a 0.4% increase in February.
Core CPI - excluding energy and fresh food - rose by 2% per year, as expected, after an increase of 2.2% per year in February. It was the lowest since November 2021. On a monthly basis, the core CPI rose by 0.4% after a 0.3% increase in February.
The data also showed that in March, the harmonized index of consumer prices (HICP) - an indicator that allows to compare inflation in Spain with inflation in European countries - rose by 0.7% compared to February and by 2.2% per year. In February, HICP grew by 0.4% on a monthly basis and by 2.9% per year.