Spain March preliminary CPI +3.3% vs +3.8% y/y expected

• Prior +6.0%
• CPI +0.4% m/m
• HICP +3.1% vs +4.0% y/y expected
• Prior +6.0%
• HICP +1.1% m/m

The drop in headline annual inflation is more than estimated, though it is best to be reminded that the sharp decline is largely due to base effects more than anything else. As a reminder, in March 2022 we saw a big jump in oil prices amid the Russia-Ukraine conflict so there is that to consider. Looking at the details, core inflation remains high in Spain with the annual reading being 7.5% in March, just down slightly from 7.6% in February.