Spain’s inflation plummeted faster than expected to 3.1 per cent in March as energy costs dropped, but price pressures remain strong, highlighting the dilemma of rate-setters at the European Central Bank.
The rate of growth in consumer prices compared with a year ago almost halved from the previous month’s 6 per cent inflation, according to figures published by Spain’s statistics office on Thursday. It was also lower than the 4 per cent forecast by economists polled by Reuters.
However, prices still rose 1.1 per cent from the previous month. Core inflation, excluding energy and fresh food prices, dipped slightly to 7.5 per cent.
