Faced with inflation running at twice the euro zone target, Spain introduced a bundle of small measures on Friday to try and tame price rises in areas as diverse as cargo trains and mortgages.
Inflation hit a nearly 5 year high of 4.2 percent in January before easing back to 3.9 percent in March, according to flash data released this week. The European Central Bank is targeting euro zone inflation of 2 percent.
Economy Minister Pedro Solbes has blamed Spain's high rises on the fact that energy weighs more in its consumer price index (CPI) than in other countries. He has also pointed out that Spain's economy is also growing over twice as fast as average.
"It's a matter of trying to contain inflationary pressures that come from the strong rise in domestic demand," a note from the Economy Ministry said.
After a cabinet meeting, Solbes said the government had committed itself to keeping 2007 public spending growth in line with the expected rise in gross domestic product that year.
Other measures hit the hot mortgage market, including a demand that banks provide more information about different sorts of loans and cut the cost of changing mortgages or closing the loan off early.
The government also introduced moves to liberalise the rail cargo market and various measures to improve efficient use of water.
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