The rain in Spain … has also helped to drive down inflation

Spain’s inflation rate dropped in March to its lowest point since October, driven by increased hydroelectric power production following heavy rainfall, which helped lower electricity costs, according to preliminary official data released on Friday.

The National Statistics Institute (INE) reported that consumer prices in the European Union’s fourth-largest economy rose by 2.3% year-on-year, a decline from 3% in February.

‘This significant drop is mainly due to the fall in electricity prices, as a result of heavy rainfall, and the fall in fuel prices,’ the economy ministry stated separately.

This marks the lowest inflation rate since October, when it stood at 1.8%, and signals the end of five consecutive months of rising inflation.

Socialist Prime Minister Pedro Sánchez hailed the decline, describing it as ‘a magnificent figure’ and ‘a clear success’ of his government’s economic policies.

The European Central Bank, which aims to maintain eurozone inflation at around 2%, cut interest rates in January following a broader slowdown in inflation across the region.

Meanwhile, the national meteorological agency (AEMET) noted that the heavy rainfall throughout March is expected to alleviate Spain’s prolonged drought, which has lasted for over three years. ALSO READ: The rain in Spain … means the country is on the verge of ending 4-year drought.

Viernes con buenas noticias para la economía de las familias. Según los datos de avance del IPC del @es_INE:

📉La inflación general se reduce 7 décimas en marzo y se sitúa en el 2,3%.

➡️Y la subyacente sigue bajando hasta el 2%, la tasa más baja en más de 3 años. pic.twitter.com/4ZCiVjE2LS

— Carlos Cuerpo (@carlos_cuerpo) March 28, 2025