He Spain's Consumer Price Index (CPI) rose 2.8% year-on-year in the preliminary reading for February, six tenths below the 3.4% in January, as published by the National Institute of Statistics (INE). Although this is the lowest inflation recorded in six months, the result worsens market expectations, since growth of 2.7% was expected.
According to the INE statement, “this evolution is mainly due to the decrease in electricity prices, compared to the increase in February 2023, and the stability of the prices of food and non-alcoholic beverages, which increased the “The same month of the previous year. In the opposite direction, fuels stand out, whose prices increase, while they fell in February 2023.”
TO monthly level, the CPI increased a preliminary 0.3% in February, in line with expectations and above the previous 0.1%.
The annual rate of the leading indicator of underlying inflation (which excludes food and energy products) decreased two tenths, to 3.4%.
Euro reaction
The Euro has reacted to higher than expected inflation data from Spain and France with a rise against the Dollar. The market anticipates that the European Central Bank will delay the rate cut, which favors the EUR. In the last few minutes, EUR/USD has risen from 1.0828 to 1.0841, a new daily high.
Source: Fx Street
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