Inflation in Spain reduces due to Energy price levels

A welcome boost to investors of Spanish property was received with news that inflation rates in Spain had dropped to the lowest level since that of April 2004.

Spain's economy is on the up and is increasing at an approximate annual rate of 2.9% as reported by the National Institute of Statistics.

Investors welcomed the news as they were previously concerned by a 3.7% increase in August, which when coupled with the instability of the economy meant that property price growth was being damaged quite severely.

Investors will be only too aware that this rate is still somewhat higher that the inflation rate of the UK of 2.5%, a halt percentage point above the target rate of 2% of the Bank of England.

One of the main reasons for the lowering of inflation is Spain is the continued lowering of energy prices which has seen petrol prices come down across Europe by as much as 10 pence per litre.

The effects of the lower costs of things like crude oil and gas are passed on to commercial businesses, the companies are under less pressure to increase prices to the consumers and therefore the end user benefit.

To owners of Spanish properties, this means that money can be saved on things like the maintenance of their homes, leaving cash for other things like extended the properties.