Key insights
- Spain's harmonized inflation edged up to 3.6% in May, meeting expectations, while core inflation also saw a slight increase. Although this is a European data point, persistent inflation in major economies can contribute to a global inflationary backdrop. This could indirectly influence the Federal Reserve's stance on interest rates, potentially leading to a more hawkish outlook or delaying rate cuts, which would be a bearish signal for US equities.
May 29 (Reuters) - Spain’s European Union-harmonised 12-month inflation rate rose to 3.6% in May, from 3.5% in the period through April, preliminary data from the National Statistics Institute (INE) showed on Friday.
The 12-month EU-harmonised inflation was in line with the 3.6% expected by analysts polled by Reuters.
Core inflation, which strips out volatile fresh food and energy prices, was 2.9% year-on-year, compared to 2.8% in April, the INE data showed.
Spain’s 12-month national inflation stood at 3.2%, unchanged from April. Analysts polled by Reuters expected a 3.4% rate.