Spain: inflation at 2.8% with core at 3.5% and food at 5.3%


According to the final reading of the data, released yesterday by the National Statistics Institute (INE), Spain’s consumer price index (CPI) rose by 0.4% in February compared to January, slightly more than the 0.3% initially estimated and which was expected by analysts at FactSet analysts.
On a year-on-year basis, Spain’s CPI in February, according to the final reading, was 2.8% (3.4% in January), with food rising to 5.3%, which was in line with its preliminary reading and analysts’ expectations.

In turn, core inflation, which excludes unprocessed food and energy prices for its calculation, stood at 3.5% in February, compared with 3.6% in January.

Finally, the harmonised CPI (HICP), also in its final reading, rose in February by 0.4% compared with January and by 2.9% year-on-year (3.5%). Both readings were in line with their preliminary readings and with analysts’ expectations.

Link Securities analysts’ assessment: Inflation continued to ease in Spain in February, benefiting from the sharp decline in electricity and clothing and footwear prices. Core inflation, meanwhile, although down one tenth of a percentage point from its January level, remained far from the 2% target set by the ECB. The readings were broadly in line with their preliminaries and with analysts’ expectations, and thus had no impact on market sentiment.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.