Spain | Inflation rebounded in July and could exceed 4% due to energy

Summary

Energy drove inflation in July. The headline rate rose by 0.4 pp, to 3.6% YoY, and the core rate by 0.1 pp, to 3.0%, both in line with expectations. For August, headline inflation is estimated to rebound to a range of 4.1% to 4.3%, with energy as the main upward pressure.

Key points

• Key points:
• Inflation rose in line with expectations.
• Energy accounts for most of the rebound, but services inflation also remains high.
• The inflation differential with the EMU remained unfavorable.
• Outlook for August

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