Spain: Harmonized inflation falls in June
Harmonized inflation fell to an over two-year low of 1.6% in June, following May’s 2.9%. Sharper declines in prices of transportation, fuels and housing and utilities were behind the deceleration.
The trend declined, with annual average harmonized inflation coming in at 6.0% in June (May: 6.7%). Moreover, core inflation dipped to 5.9% in June from 6.1% in May.
Lastly, harmonized consumer prices rose 0.58% in June over the previous month, following the 0.14% decrease seen in May.
Commenting on the release, Wouter Thierie, economist at ING, stated:
“It is premature to assume that the inflation peak is over. Several factors are at play that are likely to push inflation back above the ECB’s target during the coming winter season. The favourable base effects due to higher energy prices will gradually fade in the second half of this year. In addition, we expect an increase in oil prices in early 2024, which will further contribute to the rise in inflation. Add to that the discontinuation of certain government measures which will also put upward pressure on inflation.”