Inflation in Spain in May drops to 1.9%, below European Central Bank's target

Spain's inflation in May dropped to 1.9%, according to data released by INE, the national statistics institute, on Friday at 9 am. The figure is below the European Central Bank's target of keeping inflation below 2%.

According to preliminary data published on Friday, Spanish inflation dropped by 0.3 percentage points compared to May 2024.

This is the lowest inflation rate since October and follows a three-month downtrend. The European Central Bank's inflation target is 2%, so this is the first time in months that Spain is below the threshold.

Prices dropped mainly due to lower costs for entertainment and cultural events, which increased last year. The cost of electricity and transport has slightly decreased.

As for the annual rate of underlying inflation, it dropped three decimals, to 2.1%.

The preliminary Consumer Price Index (IPC) data released on Friday do not include the regional figures. The figures will be published around mid-June. Last April, Catalonia's inflation rate dropped to 2.1%.