The Consumer Price Index in Spain registered at -1.1% for February, which is a slight increase on January´s figure of -1.3. The results buck a trend of four consecutive declines, owed primarily to an increase in energy prices.
Consumer spending has been boosted in recent times as Spanish citizens have sought to take advantage of the improving economic situation and the decline in the price of oil and which have brought about a period of negative inflation.
Figures released this week showed that the effects of the ECB’s QE measures to date have already start to make an impression. M3, which measures the amount of money in the real economy, rose by 4.1% in January, a figure that exceeded forecasts.
European markets have been buoyant in anticipation of the ECB’s imminent purchase of sovereign bonds. It remains to be seen whether or not the measures will transfer into an upsurge in consumption.
The latest data will be welcomed by policy makers who fear a prolonged bout of negative inflation, while the price rises are unlikely to deter Spanish consumers from spending.