Spanish Inflation Unexpectedly Jumps to 5%, Backing Further ECB Rate Hikes

Deep News09-29 17:00

Spain's inflation accelerated more than expected, moving further away from the European Central Bank's 2% target and strengthening the case for the central bank to keep raising interest rates.

Data released on Tuesday showed consumer prices rose 5% year-on-year in September, up from 4.6% in August. This is the highest level since February 2023 and also above the median estimate of 4.9% from analysts surveyed by Bloomberg.

The statistics agency said sharp increases in fuel and package holiday prices were the main drivers. A measure of underlying price pressures also rose more than expected.

Affected by the Iran war, Europe faces a renewed rise in energy costs, but the region's economy has so far performed surprisingly well.

Spain is the first major eurozone member state to publish inflation data for the month, and other member states are expected to follow with accelerating inflation. Overall inflation for the 21-nation eurozone will be released on Friday, with economists estimating it reached a three-year high of 3.7%, almost twice the European Central Bank's target.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment