Spanish Inflation begins to ease.

Spain’s inflation rate has fallen for the first time in over eight months to just 4.2 percent as a reduced rate of growth has helped to steady prices.

Spain’s EU-harmonised inflation rate fell from a record 4.6 percent last month which also followed the decline that was also experienced in Germany, which points to the fact price pressures were reducing throughout the eurozone.

The high eurozone inflation has made it difficult for the European Central Bank to make the interest rate cuts, and the timing of such cuts has also been highly debated.

Spain, however is desperate to overcome the pressure of high household debt and to avoid the current economic slowdown.

As a result of the economic slowdown, there is a difference between Spain’s consumer prices and the average for the euro region which was 3.6 percent last month.

Spain’s economy is predicted to grow at its slowest pace since 1993, which was the country’s last recession.

The 10-year construction boom has ended which has cause stumbling property prices and a huge dip in consumer spending.

The economy will expand by just 2.3 percent this year compared with 3.8 percent last year.

Retail sales last month were down by 5.5 percent from last year whilst domestic demand will slump by 2.6 percent as per a government forecast published last week.

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