Eurozone inflation rises to 1%
In Spain, the harmonized inflation rate in November stood at 0.5%, three tenths more than in October
inflation
Inflation in Spain falls to 0.1%, the lowest level in three years
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.
Spanish GDP grows 0.4%, slowest in three years
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).
Inflation is still no problem for the French and German economies, although it is for the ECB
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.
Spain’s inflation takes off thanks to Easter tourism
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.
The Japanisation of the European economy
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.
Will we see a modest recovery of the euro?
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.
Strong Fall In Spanish Inflation
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%.
I…For Inflation, R…For Rates
Signs of a future increase in inflation are becoming increasingly visible. Natixis IM explains some of these global clues. First it is US long-term inflation outlook, which is currently situated around 2-3% and trending clearly higher.
Crunchtime For Fed Chair Jerome Powell?
Benjamin Cole | Fed Chair Jerome Powell has stated the Fed’s 2% target is symmetric, which may be code words for “inflation a little above 2% is tolerable.” The US central bank may find fighting inflation resembles heart surgery with a chainsaw.