Spain’s inflation slows down to 6.8%
SPAIN: Spain’s consumer prices in the 12 months to November rose 6.8 per cent, a slower pace than the previous 7.3 per cent figure marked in October, preliminary data from the National Statistics Institute (INE) showed on Tuesday.
The reading was the lowest since January and below the 7.4 per cent forecast by analysts polled by Reuters.
Core inflation, which strips out volatile fresh food and energy prices, was 6.3 per cent yearon-year, slightly higher than the 6.2 per cent recorded in October, the INE data showed.
Spain’s European Union-harmonised 12-month inflation was 6.6 per cent, down from 7.3 per cent in October and below the 7.5 per cent expectation from analysts polled by Reuters.
INE atributes CPI’S evolution mainly to lower fuel and electricity prices as well as a more moderate increase in the prices of the new season of clothing and footwear as compared to 2021.
Euro area inflation is unlikely to have peaked, ECB president Christine Lagarde said on Monday, with high wholesale energy prices not yet fully costed into retail energy costs.
Meanwhile eurozone government bond yields fell broadly on Tuesday, ater inflation in Spain and in five key German states eased this month, offering investors encouragement that the worst of the region’s consumer price pressures may soon be over.
In North Rhine-westphalia, Germany’s most populous state, annual inflation slowed this month to 10.4 per cent from 11.0 per cent in October. Inflation also eased slightly in Badenwuertemberg, Bavaria, Brandenburg and Hesse.
German 10-year yields fell as much as 12 basis points to a session low of 1.876 per cent. They were last down 11 basis points at 1.888 per cent, while those on the two-year Schatz fell 12 bps to 2.063 per cent.
Meanwhile, a preliminary reading of Spanish consumer inflation came in at 6.8 per cent in November, below forecasts for a rise of 7.4 per cent and down from October’s 7.3 per cent rate.