There were also two consecutive months of declines. Core inflation fell to 5.9%. The INE will release the final CPI data for June on July 12.
The consumer price index (CPI) rose 0.6% in June compared to the previous month, reducing its annual rate by 1.3 points to 1.9%, the lowest level since March 2021. The increase in fuel, electricity and food prices was lower than a year before.
With the decline in June, inflation continued two consecutive months of declines after weakening by nine-tenths to 3.2% in May, according to advanced data released on Thursday by the National Institute of Statistics (INE). .
The INE includes in the CPI data preview an estimate of underlying inflation (excluding unprocessed food or energy products), which fell by two tenths to 5.9% in June, 4 points above the overall CPI and at its lowest level since June 2022.
The Spanish government has just extended the VAT cut on staple foods that expired on Friday. This tax reduction will remain in place as long as underlying inflation is above 5.5%.
The INE will release the final CPI data for June on July 12.
The Ministry of Economy and Digital Transformation, after learning the June data, highlighted that Spain is “the first major economy in the euro zone to reduce inflation below 2%”, the reference value of the European Central Bank (ECB).
The department headed by Nadia Calviño stressed that the measures taken by the government have made it possible to reduce inflation “by almost 9 points in less than a year”.
The ministry also noted that June inflation data confirms the weakening of prices for food and non-alcoholic beverages, fuel and electricity.