Official inflation in Spain eases
According to official sources, Spanish annual inflation in February stands at around 0.9 percent, marking the fourth straight month in which prices have risen, easing deflation fears.
The final inflation figure for the month published by the National Statistics Institute was in line with provisional data published on February 26 and reflected a drop in prices for food and clothing.
Inflation fell by 0.2 points in February as compared to January´s figures.
Spain´s 12-month inflation figure had risen 0.9% in December and 0.4% in November.
Prior to that, the 12-month rate of inflation had been negative since March 2009 when Spain became the first country in the eurozone to report an annual decline in consumer prices, due to the economic downturn and lower energy prices.
The drop in prices had raised concerns that Spain was entering a period of deflation, a downward spiral in which consumers tend to hold back on spending as they wait for even better deals and retailers cut prices in hopes of boosting sales.
But Spanish authorities have repeatedly downplayed the risk of deflation, arguing that the decline in prices largely reflected changes on the oil market.
Spain entered into its worst recession in decades at the end of 2008 due to the collapse of the property bubble and which has caused the unemployment rate to soar to nearly 19 percent, one of the highest in the European Union.
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