Reported 4 months ago
Spanish inflation increased for the third consecutive month as government support to mitigate the energy crisis was rolled back, leading to higher prices. In May, inflation in Spain reached 3.8% from a year ago, up from 3.4% in April, slightly surpassing economists' median estimate of 3.7%. Core inflation, excluding energy and some food costs, also rose to 3% from 2.9%. This trend mirrors a similar acceleration in Germany and is expected to continue in the eurozone. The European Central Bank plans to lower its deposit rate next week, despite projections of disinflation in the coming years. The rise in Spanish inflation is primarily attributed to unfavorable base effects from energy and is not a major concern, with underlying price gains expected to fall below 2% later in the year.
Source: YAHOO