Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Spanish preliminary July HICP came in significantly lower than expected on the yearly rate at +2.9% Y/Y (vs +3.2% cons; +3.6% prior) and the sequential reading at -0.7 M/M (-0.4% cons; +0.4% prior). The national CPI also came in below expectations at +2.8% Y/Y (vs 3.0% cons; 3.4% prior) and -0.5% M/M (vs -0.3% cons; +0.4% prior).
Core CPI came in in line with expectations, at +2.8% Y/Y (vs 2.8% cons; 3.0% prior).
The headline rate was driven lower by electricity, food, and (to a lesser extent) leisure and culture prices.
Ahead of the release, analysts had a divergence of opinion regarding electricity prices - some expected a drop (due to a reduction in the related VAT) while others saw prices increasing - that might explain parts of the print coming in lower than consensus for headline.
Overall, there is little colour in the press release, so for full detail, especially on services prices, we will have to await the final data. Disinflation on leisure and culture prices seems like a positive sign in that regard, however.
For context, Spain represents 11% of the Eurozone HICP basket in 2024.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.