Latest data released by the National Statistics Institute - 29 October 2020

  • Prior -0.4%
  • CPI +0.5% vs +0.6% m/m expected
  • Prior +0.2%
  • HICP -1.0% vs -0.7% y/y expected
  • Prior -0.6%
  • HICP +0.3% vs +0.5% m/m expected
  • Prior +0.4%

The miss on Spanish headline inflation sees the reading fall to its lowest since May and just reaffirms softer price pressures across the euro area region towards the year-end.

This bolsters the narrative that the ECB will likely have to do more convincing to prevent inflation expectations from de-anchoring in the bigger picture.