The rate of inflation in Spain for March experiences a significant decline, dropping to 3.3% annually.

The Spanish government has commended efforts to manage prices, but despite this, the core inflation rate - which excludes energy and fresh produce - remains high at 7.5%, even though the annual consumer price index for March fell significantly to 3.3% from 6% in February.

The reason for this substantial decline is attributed to a 'step effect', meaning that prices have not necessarily decreased greatly since last month, but rather, compared to March of last year when there was a sharp increase in energy and raw material prices due to the Ukraine war, prices have fallen.

While the government has acknowledged that recent decreases in the cost of electricity and fuel have helped to lower the rate of inflation, it still remains among the highest in Europe.

The government's Economic Affairs Minister, Nadia Calviño, had previously anticipated the decrease in inflation for March, citing the measures implemented by the government to contain prices as contributing factors.

The INE data, however, did not provide details on which products have experienced price increases, which will be made available in two weeks.

Despite some studies showing little effect, the government still supports its policy of lowering IVA sales tax on essential foods, which was implemented three months ago.

In February, food prices experienced an annual increase of 16.6%, with fruits and vegetables topping the list.