The consumer price index fell by six-tenths to 2.8% in July, driven by falling energy and food prices.

In addition to the decrease in the cost of food and electricity, there was also an impact from the fact that in July there was a smaller increase in spending on recreation and culture. That is, their prices increased less in July of this year.

For its part, core inflation (excluding fresh food and energy) is in line with the overall level and stands at 2.8%, after falling by two tenths compared to June.

This indicator thus continues the downward trajectory that began in February 2023, when its rate rose to 7.6%.

According to the leading CPI indicator, consumer prices rose by -0.5% in July compared to June.

“The progressive decline in the consumer price index continues, inflation is down six tenths. These data confirm the strength of the Spanish economy,” says Minister Carlos Corpo in assessing the GDP and inflation data.

The inflation data coincides with the first month of the extension of tax cuts. In particular, from July 1, the executive branch extended the VAT cut to 0% on basic food products (a list that also included olive oil, the product that has become the most expensive since the inflation spiral) and to 10% on electricity due to price increases.