Spain CPI stood at + 0.8% in December, following estimates and preliminary data. This means an increase of + 0.4%. In fact, inflation in Spain remains below the EU’ average (+ 1.3% in December), which allows the country to continue gaining competitiveness via prices.
BBVA Research | At the end of the year, the Spanish economy could register three quarters in a row of 0.4% growth t / t, below the growth observed since the beginning of the recovery (0.7% t / t, on average). In this context there is a stabilization of job creation, a volatile composition of demand and low inflation.
In Spain, the harmonized inflation rate in November stood at 0.5%, three tenths more than in October
Spain’s consumer price inflation hit the lowest in more than three years in September, according to data from the statistical office INE. The CPI edged up 0.1 percent year-on-year in September, following a 0.3 percent rise in August. This was the lowest rate since August 2016, when prices dropped 0.1 percent. The result, which coincides with some analysts’ forecast such as Funcas, is due to the fall in prices of energy products, especially gas and electricity.
The Spanish economy grew 0.4% in the second quarter, one tenth less than in the previous quarter and also a tenth less than advanced at the end of July. It is the lowest rate of quarterly growth in three years, according to the National Accounts published this Monday by the National Institute for Statistics (INE).
Consumer price index rose 0.2% in Germany in June compared to May, while the yoy rate rose 1.6% (1.4% in May). The French National Statistics Institute, Insee, announced that the consumer price index (CPI) in France rose 0.2% in June compared to May, while the interannual rate rose 1.2% (0.9% in May). All figures coincide with analysts´ expectations.
The Consumer Price Index (CPI) in Spain rose 1% in April compared to the previous month and raised the yoy rate by two tenths to 1.5%, its third consecutive increase since February and its highest level since last November, according to the definitive figures published this Tuesday by the National Institute of Statistics (INE), which coincide with those advanced at the end of last month.
José Ramón Díez Guijarro (Bankia Estudios) | Fortunately, in the EMU, with the exception of the second half of 2014, when the expected inflation expectations traded by the five year German bond reached negative territory, this deflation risk seems much more contained. This could be the principal difference between the European and Japanese economies.
The inflation data for March will be the key publication of this week. With the market discounting a 0.1% drop in the main figure, Ebury analysts believe that a 1% inflation would be enough to drive a modest rebound in the euro from its current position.
Inflation fell six decimal points in November to 1.7%, the lowest in seven months in Spain. Within the deflationary evolution, almost general across components, energy process (electricity and oil) stand out. Analysts at Bankia Estudios predict a further fall for next year: It will recover in the first months of 2019 to around 2% and close the year at 1.5%.