Spain's Economy Minister Nadia Calvino | Majorca Daily Bulletin reporter

Spain's Economy Minister Nadia Calvino said today inflation has peaked in the country and is likely to start falling in the second half of this year.

The 12-month inflation rate in Spain had increased to a three-decade high of 9.8% in the period through March though the most recent data in April showed a slight decrease to 8.4%.

Calvino added her government had to prepare itself for an upcoming interest rate increase. She said her ministry has already reduced risks by extending the maturity of its outstanding debt to more than eight years.