Inflation should slow more than expected in Spain in December


It was the last major European indicator to be unveiled in 2022…










Photo credit © ECB


(Boursier.com) — This was the last major European indicator to be unveiled in 2022. In this case, the preliminary consumer price index in Spain. The latter gave us a good surprise since annual inflation, harmonized with European standards, would have reached 5.6% in December, against 5.8% consensus, and after +6.7% in November. Sequentially, prices should nevertheless increase by 0.3% after a drop of 0.3% the previous month and against a consensus of +0.2%. The non-harmonised CPI index should progress by 5.8% after +6.8% in November, and against 6.1% expected by the market.

Iberian inflation has thus fallen by more than 5 percentage points since it reached the record level of 10.7% in July, driven by the continuous drop in electricity and fuel costs. Core inflation, which does not take into account volatile electricity and food prices, is said to have accelerated in December, reaching 6.9%. Despite the overall lull in price strength, inflation is likely to remain high next year and not return to the 2% target until 2025, the Bank of Spain warned earlier this month.


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