Spanish inflation takes a dive as it falls to -1.2 per cent

 
Emma Haslett
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Inflation was expected to be higher than the -1.2 announced (Source: Getty)

In a world where deflation is becoming the norm, it was hardly expected that today's Spanish inflation figure would do much to shore up locals' optimism - but the figure has managed to surprise even the most pessimistic of analysts.

The country's figure for EU harmonised consumer price inflation dipped to -1.2 per cent in September, figures published today showed - way below expectations of -0.7 per cent, and a massive fall from the -0.5 per cent reported in August.

Consumer price inflation was -0.9 per cent, down from -0.4 per cent in August. The country's official statistics body, INE, attributed the fall to lower electricity and fuel prices.

It's a blow for an economy which has shown encouraging signs in recent months. Figures published in mid-September showed industrial production climbed 0.6 per cent in July, putting it 5.2 per cent higher than in the same month last year.

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