The Spanish consumer price index fell by a steep 0.9 per cent during the month of May, after an already declining three-month spiral, and a 0.2 percent decline in April, according to the Institute of National Statistics.

The year-on-year drop was the steepest in 57 years. Inflation in Spain was negative in March for the first time since 1961, when the National Statistics Institute began tracking data.

Spain is currently living the worst recession in over 50 years as it battles not only the financial crisis but also a collapsed property market.