Behind the downward pressure on consumer prices is cheaper electricity and lower prices for transportation and recreation, reports news agency Bloomberg.
The decline was slightly larger than expected. The average forecast was for a May inflation rate in Spain of 2 percent, according to Bloomberg.
This increases the likelihood that the European Central Bank (ECB) will lower its interest rates next week.
According to a separate report from the statistics agency in Italy, inflation also fell there to 1.9 percent in May, down from 2.0 percent in April. It was in line with expectations.
