Spain’s headline inflation slowed to the lowest level since March 2021 in June as grocery price rises – as well as fuel and electricity costs – eased, data shows.

The consumer price index for June was 1.9%, a 1.3 percentage-point drop from May, when inflation sat at 3.2%, data from the country’s National Statistics Institute (INE) released yesterday (12 July) shows.

Food and non-alcoholic beverages rose at a rate of 10.3% in June, 1.5 percentage points lower than in May.

The slowing grocery inflation was led by a slower rate of increase in bread prices, cereals and their derivatives and meat, the INE said. Fresh-fruit prices fell year on year in June.

The price of bread rose 6.1% year-on-year in June compared to 13.9% in June 2022. Cereals and their derivatives increased 13.4% compared to 18.4% in June last year, and meat – of which poultry rose at 5.9% compared to a 14.1% rise last June. Fresh-fruit prices dropped 4.3% year-on-year compared to a 19.3% rise a year earlier.

Prices of milk and eggs rose again at a double-digit rate but the rates of increase were “stable”, the INE said.

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Oils and fats remained higher than other categories at 2% above May’s inflation rate, and 15.4% above last June’s rate.

Sugar was up 44.9% year-on-year and cereals remain 13.4% higher than a year ago.

Alcoholic drinks rose 0.1% on a monthly basis and 9.9% year on year.

Spain’s annual ‘core’ inflation rate, which strips out fresh food and energy prices, hit a one-year low of 5.9% in June, compared to 6.1% in May.

The EU-harmonised inflation figure for the country hit a two-year low of 1.6% in June, compared to 2.9% in May.

It comes as inflation in Germany picked up again in June – led by rising food prices. Figures released yesterday (11 July) by the country’s Federal Statistical Office – Statistisches Bundesamt – revealed inflation in June was 6.4% higher than 12 months earlier and up from 6.1% in May. The rate of inflation had slowed in the previous three months.

Meanwhile, in the US, grocery inflation slowed again in June after a spike last August.

Last month showed a similar situation n the UK where the UK’s food and beverage prices eased for the second consecutive month.