Spain's EU-adjusted annual inflation rate has dropped to 2.4%, its slowest rate in a year, due to decreased fuel and food prices, according to preliminary data from the National Statistics Institute (INE) published on Thursday.

This rate was lower than the 2.9% recorded for the period ending in July and below the 2.5% that analysts surveyed by Reuters news agency had forecast.

Core inflation, which excludes fluctuating fresh food and energy prices, stood at 2.7% year-on-year, a decrease from 2.8% for the period ending in July, according to the INE data.

Furthermore, Spain's national inflation rate was 2.2% year-on-year in August, down from 2.8% in July, according to the INE. 

The slowdown in price increases was mainly due to a base effect from fuel prices, which had surged in August last year. 

In addition, a fall in food prices also contributed to the easing trend, the INE reported.

The deceleration in inflation occurs alongside stronger-than-anticipated economic growth. Between April and June this year, Spain's economy expanded by 2.9% year-on-year, exceeding the growth rate of the eurozone.

Eurozone countries have experienced persistently high inflation over the past three years, driven by the aftermath of the COVID pandemic and increased energy prices resulting from the Ukraine conflict.

Spain introduced a range of measures totalling billions of Euros to combat inflation, many of which were phased out by mid-year. However, one of the few remaining measures is the 0% value-added tax rate on food.