Spain: Inflation picks up in May from April
Latest reading: Harmonized consumer prices were up 3.6% in annual terms in May, following a 3.5% increase in the previous month. May’s reading was the strongest since May 2024.
Relative to the previous month’s data, there were higher price pressures for transportation (+8.0% on a year-on-year basis vs +7.0% in April), restaurants and hotels (+5.0% vs +4.8% in April) and recreation (+3.6% vs +1.3% in April). In contrast, there were reduced price pressures for food and non-alcoholic beverages (+2.2% vs +2.6% in April) and housing and utilities (+1.3% vs +1.8% in April).
Meanwhile, consumer prices increased 3.2% in May, stable from the previous month’s reading.
Lastly, harmonized consumer prices rose 0.09% in May on a month-on-month basis, following a 0.70% rise in the previous month.
Panelist insight: Commenting on June’s inflation outlook, Camilo A. Ulloa, analyst at BBVA, stated:
“BBVA Research’s real-time estimates suggest a further increase in headline inflation in June […]. The mechanical effect of the partial withdrawal of energy tax breaks (electricity and gas this time) will increase the energy sector’s contribution to inflation.”