Madrid, Sep 13 (IANS): The Spanish annual inflation rate eased in August to 1.5 percent, according to the data released by the Spanish National Institute of Statistics (INE).

The INE said Thursday the annual inflation rate decreased by 0.3 percentage points in August, as compared to the previous month, reports Xinhua.

The cost of transportation saw a decrease of 0.4 percent, as prices of fuel and lubricants fell in August as compared to what it was in the same month last year.

The housing prices also decreased by 0.3 percent.

The Spanish annual inflation rate has been declining for two consecutive months and the government expects it to fall to 1 percent by the end of the year.

Spain's Secretary of State for Economy Fernando Jimenez Latorre said Thursday that lower prices and lower salaries would improve Spain's competitiveness in the international arena.

However, Spain's general workers union said prices were still "too high" given Spain's economic situation and the low wages of the workers.