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Spain's inflation rate falls

Posted on Dec 14, 01:56PM | IANS

Spain's inflation rate fell 0.6 percent in November to 2.9 percent against 3.5 percent in the previous month, the Spanish National Institute of Statistics (INE) said.

The INE said the decrease was mainly due to fall in transport prices by 3.1 percent as a result of the fall in the cost of fuel and new vehicles, reported Xinhua.

This November inflation rate was important to adjust pensioner's purchasing power to the general prices increase.

However, the Spanish government has already announced they cannot afford to cover the full inflation rate in the 2013 pensions, announcing instead, that most pensions will increase by 1 percent while those earning a pension below 1,000 euros (USD 1,306) a month will enjoy a 2 percent increase.