Spain inflation eases a little in April but still much higher than before US-Iran conflict
Complete. Here is the key summarySpain's inflation eased slightly in April but remains significantly higher than pre-US-Iran conflict levels. Headline inflation rose by 0.4% month-on-month, driven by widespread price increases, particularly in restaurants (1.2%) and clothing (6.0%). Annual transportation prices surged by 6.5% due to higher fuel costs. Core annual inflation decreased slightly to 2.8% from 2.9% in March. However, ongoing Middle East tensions are expected to exacerbate inflationary pressures, particularly in energy prices, in the coming weeks and months.
Even so, headline inflation increased further by 0.4% on the month with price pressures seen more widespread. Restaurants and accommodation services saw a 1.2% increase with clothing and footwear reflected a 6.0% jump in prices. Meanwhile, transportation prices saw a 0.9% jump.
As for the annual estimate, it is all down to higher energy prices. Transportation prices surged by 6.5% compared to April last year, largely on the back of higher fuel and lubricant prices for personal vehicles.
The only bright spot is that core annual inflation is seen easing a touch to 2.8% - down from 2.9% in March.
But as the Middle East conflict drags on, expect inflation pressures to widen and spill over to core prices in due time. That especially as energy prices continue to stay higher in the weeks/months to come.