Spain Prices Drop

Consumer prices in Spain dropped a hefty 1.1% in December compared to the same month last year, a sixth straight month of declining prices the government expects to continue, AFP reported. That confirmation of Spain’s earlier inflation estimate is likely to fan European Central Bank (ECB) fears of eurozone countries falling into a deflationary trap of falling prices, wages, and consumption that would further undermine Europe’s already feeble economic activity. Spain’s National Statistics Institute said plummeting oil prices fuelled December’s 6.1% drop in transport costs, as prices for communications and housing fell 5.7% and 0.2% respectively.