Spanish inflation dips in August, helped by fuel prices

MADRID: Spain's annual inflation rate dipped in August as pressure eased from fuel and lubricant prices, preliminary data showed Tuesday.

Consumer prices climbed 2.7 in August from a year earlier, down from a 3.0-percent advance in July, the National Statistics Institute said in a statement.

"The result is mostly the consequence of price changes for fuel and lubricants and for food and non-alcoholic drinks," it said, without giving further details.

Inflation hit a 30-month peak of 3.5 percent in April but the Bank of Spain predicts the rate will decline over the coming months, to reach 1.7 percent at the end of 2011.

Copyright AFP (Agence France-Presse), 2011