Bloomberg News

Spain Producer-Price Inflation Slows as Economic Recession Looms

February 24, 2012

Feb. 24 (Bloomberg) -- Spanish producer-price inflation slowed for a fourth month in January as the economy edged toward its second recession since 2009.

Prices of goods leaving factories, mines and refineries rose 3.6 percent from a year earlier, after increasing 5.2 percent in December, the National Statistics Institute in Madrid said today. Economists had expected a gain of 4.3 percent, according to the median of three forecasts in a Bloomberg News survey. Prices fell 0.8 percent on the month.

Prime Minister Mariano Rajoy, in power since December, is trying to convince investors and voters he can face down opposition to overhaul the economy and implement the deepest budget cuts in at least three decades. Spain’s economy may shrink more in the first quarter than in the last three months of 2011, when it declined 0.3 percent, Deputy Economy Minister Fernando Jimenez Latorre said on Feb. 16.

--With assistance from Ben Sills in Madrid. Editors: Jeffrey Donovan, Alan Crosby

To contact the reporter on this story: Angeline Benoit in Madrid at abenoit4@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net


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