Low inflation in Europe was given another screw down on Thursday with the news that Spanish consumer prices fell for a fifth month in a row in November.
The fall in November was also the sharpest since August. Even if the fall in the oil price can explain part of the stubborn trend, once it is stripped out core prices fell in October for a second straight month.
The government is downplaying the deflationary risk, pointing to some economic recovery and its ability to maintain spending. It is also now one of the eurozone’s fastest-growing economies.