Inflation falls in Spain for 4th consecutive month

Spanish inflation rate is expected to fall in Spain for the forth month in a row in August, over eased pressure on fuel and food prices, the National Institution of Statistics said here on Tuesday. According to the INE, Spain's Consumer Price Index, a main gauge of inflation, was expected to rise by 2.9 percent year on year, down 0.2 percent in comparison with the July figure. It is the first time for price rise to fall below 3 percent since November 2010, and marked the fourth consecutive drop for the monthly indicator since April, when the Spain registered a peak of 3.8 percent in CPI. The INE attributed the decline in inflation rate mainly to price changes of fuel and lubricants and food and non-alcoholic beverages. The statistics institute will publish its confirmation for the August inflation rate on September 13. INE began to publish its predictions for the inflation rate at the start of 2011 in order to avoid confusion over different methodology used for calculating prices of shoes and clothing as well as fresh fruit and vegetables, caused by a change in regulations by the European Commission.