Spanish inflation dipped below the European Central Bank’s 2% target in May, preliminary data showed today, boosting the case for more interest rate cuts in the euro zone.
Consumer price rises in the European Union’s fourth-largest economy slowed to 1.9% on an annual basis, down from 2.2% in April, the National Statistics Institute said.
The decline was mainly driven by a decrease in leisure and cultural prices, which had spiked in May 2024 and a slight decrease in transportation costs, the agency said in a statement.
The drop reinforces a trend of slowing inflation in Spain and the rest of the euro zone in recent months.
Spanish Prime Minister Pedro Sanchez welcomed the figures, writing on social network X that his “government is delivering”.
“We are achieving growth while easing price pressures, despite global uncertainty,” he added.
His government has gradually scaled back inflation relief measures introduced after Russia’s invasion of Ukraine, though some programmes – such as free public transportation for commuters – remain in place.
With inflation close to the 2% target, the ECB shifted last year to cutting interest rates to boost the euro zone’s sluggish economy.
