Spain's annual inflation rate stands at 0.3% in September

The Spanish annual inflation rate stood at 0.3 percent in September, according to the Consumer Price Index (CPI) data released on Friday by the Spanish National Institute of Statistics (INE). September 2012 Spain's prices had increased by 3.4 percent when the Spanish government increased general sales tax by three points, from the previous 18 percent to the current 21 percent, and reduced sales tax from 8 percent to 10 percent. The CPI has been declining for three consecutive months and September rate is the lowest one since 2009, when the CPI also stood at 0.3 percent. The INE reported that prices of food had a big impact on September's rate, increasing by 2.5 percent (around 2 percent less than a year ago) thanks to decreased prices of fresh fruits in the ninth month of the year when compared with a year ago. Prices of transport also experienced lower rates in September when compared with a year ago as prices of cars and fuel were lower in September 2013 than in September 2012. Housing prices decreased by 1.4 percent, prices of medicines increased by 0.4 percent, while prices of leisure and culture increased by 0.1 percent. Meanwhile the INE also reported that on a monthly basis, prices in Spain increased by 0.2 percent. The Spanish government expects 2013 inflation rate to finish below 1 percent and in their opinion lower salaries and prices will help boost the country's economy. Joan Rosell, president of the Spanish Confederation of Business Organizations (CEOE), believes this data is positive. "A low inflation rate is always good taking into account the economic situation," he said. Meanwhile, one of the main Spanish unions UGT, criticized the lower salaries Spanish workers are receiving due to the crisis, which are also reflected on the Spanish inflation rate, along with the contraction of domestic demand.