On Friday, National Statistics Institute data showed that Spanish prices surged 9.3 per cent in the 12 months to September, registering a decline of more than one percentage point, thanks to an electricity price slowdown and a public transportation price cut.

Data suggests that the reading was the lowest since May. The locally measured inflation figure declined to 9 per cent from 10.5 per cent. The INE data also showed that core inflation, which strips out volatile energy prices and fresh food, was at 6.2 per cent year-on-year, down from 6.4 per cent in August.

There is a statistical effect in the sharp decline as electricity prices in September 2021 had already seen a hike and initiated the upward path. In September, the government introduced a subsidy programme of free train tickets and a price cut for public transportation, which also contributed to curbing the general price rise.

The INE also suggested that a reduced fuel price has helped reduce the inflation rate. In July, Spain hit an inflation peak when the EU-harmonised rate was at 10.7%, and the government and the Central Bank expect prices to moderate in the coming months. The government has been approving successive relief packages, with tax reductions on power and gas and a cap on gas prices for power generation.