Prices have not risen by as much as they did in the summer. / sur

Inflation in Spain plummeted to 7.3% in October, initial reports show

The country's Consumer Price Index has dropped for three consecutive months since the peak of 10.8% recorded in July

AMPARO ESTRADA MADRID.

The rate of inflation in Spain dropped significantly in October for the second month running and is currently at 7.3%. This is down by 1.6% compared with September, which also registered a 1.6% in relation to August. In other words, inflation has dropped for three consecutive months.

The October rate is mainly due to a reduction in electricity prices, but gas is also cheaper than it was at the same time last year. Another, although less influential factor, is that many shoppers have not yet begun to buy new winter clothing because the weather has been so warm practically everywhere.

This is a preliminary figure which will have to be confirmed by the National Institute of Statistics in mid-November, but it does show that prices have not risen as much as they did in the summer. However, inflationary problems do persist as the core inflation rate (which does not include non-processed food or energy products) is still at 6.2%.

One of the biggest drops since Spain adopted the euro

Sources at the Ministry of Economy have said that the drop of a point and a half in the inflation rate in October is one of the biggest monthly reductions since Spain adopted the euro in 2002, and that since the peak rate in July (10.8%) government measures have reduced inflation by 32%.

These include the Iberian Exception (a cap on the price of gas used to generate electricity), a reduction in the IVA sales tax on gas and electricity to 5%, the 2% cap on property rent and lower public transport costs.