Inflation in Spain rose to 3.3% due to higher prices for gasoline and food

This article was originally published in English

According to the National Institute of Statistics, interannual inflation in Spain for April 2024 was 3.3%. That was a slight increase from 3.2% in March and the highest in three months. However, it was still below analysts’ estimates, who estimated it at 3.4%.

This indicator provides a preview of the price index. Consumption which, if confirmed, would represent a one-tenth increase in the annual rate since the deviation was 3.2% in March.

Prices for food and gasoline

This surge in inflation was mainly due to rising food and gas prices, although drop belonging electricity prices to some extent compensated for the effect of rising prices.

Annualized core inflation, which excludes energy and food prices due to their inherent volatility, was 2.9%, down from 3.3% in March. It was the lowest figure since January 2022. Monthly inflation also stood at 0.7% in April, down from 0.8% in the previous month.

The Ministry of Economy noted that inflation data continues to reflect potential of the Spanish economy make the biggest ones compatible height economies among the main eurozone countries with price moderation and maintenance support for the most vulnerable.

Germany has lowest inflation since May 2021

Annual inflation rates in Germany According to the Federal Statistical Office, data for April was also published on Monday, amounting to 2.2%. This was the lowest figure since May 2021, although a little below expectations

analysts – 2.3%. This was mainly due to a slowdown in services inflation to 3.4% in April from 3.7% in March.

However energy prices They fell at a slower rate of -1.2% this month, down from -2.7% in March as a short-term cut in natural gas taxes ended. On the other hand, food inflation rose to 0.5% in April from -0.7% in the previous month. Monthly inflation in Germany was 0.5% in April, down from 0.4% in March.

Could the ECB cut interest rates in June?

In recent months, the economies of Spain and Germany have been hit by continued high interest rates as well as a cost of living crisis. Now that inflation appears to be slowing somewhat, albeit with some headwinds, a key question arises: will the European Central Bank be able to cut interest rates this summer?

Until now, the ECB has maintained a so-called data-driven approach to inflation, awaiting more convincing and sustained evidence that inflation is indeed falling. These include, but are not limited to, reports on inflation, the labor market, retail sales and gross domestic product.

The bank has already given numerous indications of a possible rate cut. the beginning of Junewhich greatly contributed to strengthening the morale of investors and consumers.