Madrid  - Spain's EU-harmonized inflation rate fell to the record low of 0.8 per cent in January, down from 1.5 per cent in December, the National Statistics Institute said Friday.

Inflation declined for the sixth consecutive month to the lowest level since such statistics began to be issued in 1977.

The drop was attributed mainly to lower oil prices.

Economy Secretary of State David Vegara described the drop as good news for families and exports, dismissing the possibility of deflation.

Spain's economy is now officially in a recession after contracting for the second consecutive quarter. (dpa)