Spanish inflation fell to a 13-month low in December, the Spanish National Institute of Statistics (INE) confirmed on Friday.

Consumer prices rose by 2.4 percent year on year in December, the lowest level in Spain since November 2010, when inflation stood at 2.3 percent. The figure is down from 2.9 percent in November, according to the INE.

The December level of inflation is especially important as it is used as the baseline for many wage negotiations in the country and helps determine wage increases for the coming year.

Wage increases in Spain are likely to be below the level of inflation, as unions, employers and the government of Mariano Rajoy are locked in discussions over labor reform.

The underlying rate of inflation, which doesn't include energy or food costs, fell by 0.2 percent to 1.5 percent at the end of the year.

One reason for the fall was lower prices of shoes and clothing offered by many stores which were eager to attract customers in the pre-Christmas market. The factor will also be visible in the inflation rate in January when the sales season moves into full swing.