Spanish consumer prices rise for first time in a year

Madrid/Palma.—Spain’s consumer prices edged up in June for the first time in nearly a year as an economic recovery picks up, though the minimal 0.1 per cent rise signalled subdued inflation pressures there and in the euro zone as a whole.
Prices rose 0.1 per cent year-on-year in June, final data from the country’s National Statistics Institute showed yesterday, after 11 straight months of falls. In May, prices had fallen 0.2 per cent.
The June data, which comes two days before final figures for the euro zone, matched the preliminary reading. Inflation in the region was dragged down in the past year by a sharp drop in oil prices, helping boost Spain’s recovery by giving cash-strapped consumers more spending power. But the prolonged spell of low prices also raised the threat of a self-perpetuating and growth-harming deflationary spiral, prompting the European Central Bank to launch a €60-billion per month asset purchase programme in March.