The specter of growth-sapping deflation may have finally arrived in the euro zone but you won't find policymakers in Spain panicking anytime soon.
The country has made some "bold reforms" in the last three years, Luis de Guindos, the country's finance minister told CNBC on Friday, shrugging off the weak consumer price data and blaming it on the dramatic fall in the price of oil.
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"This is positive, this is a positive sign. In Spain, oil prices are reducing the inflation rate. And it's not because we have deflation. It's totally different, inflation is like cholesterol. There are two kinds of deflation. The bad one and the good one. In Spain, you know, we have the good kind," Luis de Guindos, told CNBC at the World Economic Forum in Davos.
This is the deflation that is filling the pockets of the households, he added, and has been fueled by the reforms Spain has taken in the energy markets and the cheaper price of oil at the pump, he said.
Prices in the euro zone fell 0.2 percent year-on-year in December, marking the first time since 2009 that prices have dipped into negative territory. But the statistics for Europe showed that energy was indeed weighing massively on prices with an annual fall of 6.3 percent. In Spain, annual consumer prices fell around 1 percent in December.
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As well as energy reforms, de Guindos boasted that Spain's new policies were the perfect example of the reforms that the euro zone is looking for..
"We were on the brink three years ago...we have started to reap the rewards of those policies," he said.
