In Spain, the first recorded deflation in the history of the country.

Consumer prices in Spain, on the basis of March decreased to 0.1 per cent over 12 months, said the preliminary report of local statistics agency INE. Thus, the country was first recorded deflation in the history of calculating this indicator, which began in 1961, said AFP.
In February, inflation in Spain in the year on year was 0.7 percent. The final statistics for March will be published on 15 April, but as a rule, these preliminary reports are not too different from the final figures.
In monthly terms, deflation was recorded in Spain during the three winter months. It is related to the economic recession in the country, because of which the demand for commodities declined. Consequently, manufacturers have been forced to lower prices. It is believed that deflation is a major feature of reducing the economy.
In 2008, Spain entered into the first recession in 15 years. It was caused by the global economic crisis, which has affected all European countries. In the fourth quarter of the GDP of Spain fell by one percent, while the third - to 0.2 percent.
In the middle of last year, inflation in Spain reached 5.3 percent year on year, which was the maximum in 1997. Price increases due to sharp increases in fuel costs on the world market - if at the beginning of the year barrel of oil cost about a hundred dollars by July - more than 140 dollars. Because of the economic crisis in world oil prices in 2009 dropped to 40-50 dollars per barrel.