Palma.Spain's general consumer price index for November registered a year-on-year increase of 2.9%, under the previous month's reading of 3.0%, according to the preliminary data from the country's National Institute of Statistics yesterday.
Prices have been slowing down since the high of 3.8% reached in April, as a result of pharmaceutical drugs and products such as fuel and lubricants.
Annual increase
Harmonised CPI also fell by one decimal point to an annual increase of 2.9% from 3.0%.
According to analysts at Digital Look, We will have to wait two weeks for the full CPI data to be released. In any case, it is good to see a decline in the headline figure.
Lethargic demand and cost control (salaries and energy) lead us to believe that general inflation could fall to 2.5% in the coming months.
Major problem
Inflation of almost 3% remains above the Eurozone's average and translates to a loss of competitiveness.
Cost inflation continues to be a major problem for Spain due to its high dependence on foreign energy, Digital Look said.
The festive season will also be a test of how healthy, or not, consumer confidence is.
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