Inflation in Spain fell to a 22-month low in May

The last time the annual price index was lower than this was in July 2021, at 2.9 percent. The decrease in inflation is mainly due to the decrease in fuel prices and the slower price increase in food prices.

Transport prices decreased by 3.7 percent after a 3.9 percent increase in the previous month, housing and utility costs fell by 10.5 percent after a 10.8 percent decrease in the previous month, the prices of electricity, gas and other fuels 26, They decreased by 7 percent after the previous month’s 27.3 percent fall. In addition, the prices of food and non-alcoholic beverages rose at a slower pace, by 12 percent after 12.9 percent in April, while the price increase of hotels, cafes and restaurants, as well as home furnishings and household equipment also moderated in May.

High food prices are a significant burden for Spanish households. The Spanish government announced at the end of December that, among other things, it will try to alleviate the burden caused by inflation in the first half of 2023 in Spain by temporarily canceling the VAT on certain basic foods.
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