Spain's consumer prices fall by 0.7 pct in March

Spain's consumer prices fell by 0.7 percent in March, compared with a year earlier, figures published Tuesday by Spain's Statistical Office (INE) showed.

The INE reported that March inflation rate is 0.4 percent higher than that of February when prices fell by 1.1 percent on a year-on-year basis. This variation was due to prices of fuel, organized trips and food and vegetables.

Prices of transport fell less than in February dropping by 3.5 percent, the INE said, while prices of items related to leisure and culture, where organized trips are included, fell by 0.4 percent, also a smaller fall when compared with February.

Meanwhile, prices of food and non-alcoholic drinks increased by 0.4 percent due to higher prices of oil and smaller falls of fresh fruit and fish when compared with a year earlier.

The INE also reported that Spain's consumer prices increased by 0.6 percent from February to March due to higher prices of fuel, clothing and shoes and prices of organized trips. They increased by 4.8 percent, 4.4 percent, 3.9 percent and 5.8 percent respectively.

On the other hand, prices of food and non-alcoholic drinks fell due to lower prices of vegetables and fresh fruit, while prices of electricity and gas also fell by 0.4 percent and 1.7 percent respectively.

Spanish prices have been falling for nine consecutive months on a year-on-year basis. The Spanish government said lower prices would benefit Spaniards increasing their disposable income, which will have a positive impact on consumption and also will decrease Spanish companies' cost of production. Endit