Spain's prices fall by 1.1% in December

December 31, 2014 10:27 am 

MADRID, Dec. 31 — Spain's prices fell by 1.1 percent in December when compared with the same month in 2013, according to advanced data of the Consumer Price Index (CPI) published on Tuesday by the Spanish Statistical Office (INE).

The INE attributed this fall to lower prices of fuel and lubricants which, on the contrary, had risen in the same month in 2013.

Spanish prices have been falling for six consecutive months and despite the rumors of deflation the Spanish government considered the fall positive, as it can boost domestic demand.

The Spanish Minister of Economy, Luis de Guindos, said on Tuesday that the government expected "negative inflation rate for a few months" and stated that the fall was positive as it reflected the impact of lower oil prices on the inflation, which could have a positive impact on consumers.

According to De Guindos, lower oils prices could help Spain to save around 10 to 12 billion euros.

The INE will confirm this data on Dec. 15 when it will provide more information about the evolution of prices. (1 euro = 1.22 U.S. dollars). (PNA/Xinhua)

LGI/JSD

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