Preliminary data provided by the National Statistics Institute (INE) showed that in March consumer price growth accelerated to 3.2% per annum, as expected, from 2.8% per annum in February. This development is mainly due to the increase in electricity and fuel prices, compared to the decrease in March 2023. In the opposite direction, the prices of food and non-alcoholic beverages increased less than in the same month of the previous year.
Core CPI - excluding energy and fresh food - rose by 3.3% per year after an increase of 3.5% per year in February. The March increase was the weakest since February 2022
On a monthly basis, the CPI increased by 0.8%, accelerating compared to February (+0.4%). Economists had expected a 0.6% increase.
The data also showed that in March, the harmonized index of consumer prices (HICP) - an indicator that allows to compare inflation in Spain with inflation in European countries - increased by 1.3% compared to February and by 3.2% per annum. In February, HICP increased by 0.4% on a monthly basis and by 2.9% per annum. Spain's inflation was one of the lowest in the eurozone, although still exceeding the ECB's 2% target.