Spain | Inflation moderated in April, but will rise again in May

Summary

Headline inflation slowed to 3.2% year-on-year, driven primarily by energy prices and, to a lesser extent, services. Meanwhile, core inflation moderated to 2.8%. However, BBVA Research estimates that headline inflation could rise to 3.4% or 3.5% in May.

Key points

• Key points:
• Headline inflation surprised to the downside, while core inflation met expectations.
• Inflationary pressures are primarily concentrated in energy and unprocessed foods, although both components surprised to the downside in April.
• Unfavorable inflation differentials relative to the EMU.
• Outlook for May.

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