It’s another sign that last year’s high inflation rates may have peaked. In Spain the figure has been declining for five consecutive months and in the euro area as a whole there was also a first drop in November compared to the previous month. Nowhere in the euro area is inflation currently as low as in Spain.
The further decline is related to falling electricity prices and lower fuel prices, writes INE. Measures taken by the Spanish government also play a role in curbing price increases, such as free train travel in the region, limited rent increases and support to reduce energy bills.
A new support package was adopted earlier this week to help people overcome the cost crisis. For example, 4.2 million families with lower incomes will receive a one-off allowance of €200. A tax relief on the energy bill has also been extended until the first half of 2023.
With the latest package, Madrid has now invested at least €45 billion in support packages to ease the pain of high inflation.
