Nov 29 Reuters Spain39;s annual inflation rate fell to 3.2 in November as a result of cheaper fuel and tourist packages, preliminary data from the National Statistics Institute INE showed on Wednesday.

The 12month inflation rate was lower than October39;s reading of 3.5 and below the 3.7 expected by analysts polled by Reuters.

The drop in inflation bodes well for the country39;s overall economy, Economy Minister Nadia Calvino said in a statement.

Salaries gained purchasing power and Spanish companies competitiveness could increase their market share, despite the international difficult environment, she said.

Electricity prices as well as food and nonalcoholic beverages prices also contributed to the drop in annual inflation, INE said.

Core inflation, which strips out volatile fresh food and energy prices, was 4.5 yearonyear, the slowest rate since 4.4 the 12 months through April 2022, the INE data showed.

Spain39;s European Unionharmonised 12month inflation was 3.2, down from 3.5 in October and below the 3.7 expected by analysts polled by Reuters.

Spain39;s inflation is currently one of the lowest in the eurozone, although it is still above European Central Bank 2 target.

Reporting by Matteo Allievi, editing by Inti Landauro and Christina Fincher

Source Reuters