Inflation in Spain decreased in March, reaching 2.3%, a decrease of seven-tenths of a percentage point compared to February. The data was shared by the National Statistics Institute (INE), which confirms the lowest inflationary pressure since October 2024, when the rate stood at 1.8%.

The drop in inflation is mainly caused by the reduction in the price of electricity, in consequence of an increase in hydroelectric production due to the heavy rains of recent months. Furthermore, the decline in fuel and lubricants for personal vehicles has contributed to the moderation of the CPI. Another relevant factor has been the lower price increase in the leisure and culture sector compared to March of last year.

With this decline, inflation ended five consecutive months of increases, a trend that worried both consumers and economic authorities. This CPI performance has also been reflected in core inflation (which excludes unprocessed food and energy products), which fell two-tenths of a percentage point, reaching 2%, its lowest level in more than three years since December 2021.