Spain Sees Inflation Rise as Consumer Prices Climb in June

The Consumer Price Index (CPI) in Spain experienced a year-on-year increase of 0.2% in June, reaching 2.2%, as reported by the National Statistics Institute (INE). This rise in inflation is attributed primarily to growing fuel and food prices, marking a reverse trend after three consecutive months of declining rates. According to the INE's preliminary data, the uptick in CPI reflects higher costs for fuels, contrasting with a drop seen in June 2024, and to a lesser extent, an increase in food and non-alcoholic beverage prices compared to the previous year. Interestingly, the core inflation rate—excluding unprocessed food and energy—remained stable at 2.2% in June, paralleling the overall index. Monthly inflation showed a growth of 0.6% from May to June, a rate that is 0.5% higher than the previous month, indicating nine consecutive months of monthly increases. Simultaneously, the Harmonized Consumer Price Index (HICP) also reported a year-on-year rise of 0.2% in June, bringing the rate to 2.2%. The core inflation for the HICP is likewise estimated at 2.2% for June. The INE is set to release the final CPI data for June on July 15. In other news, the economic landscape is further complicated as former President Donald Trump has indicated intentions to renegotiate trade agreements between the United States and Spain. This follows Spanish Prime Minister Pedro Sánchez’s refusal to increase defense spending to 2% of GDP, as pledged during the recent NATO summit. The trade relationship between Madrid and Washington is notably significant, covering a diverse array of products that are critical to both economies. Related Sources: • Source 1 • Source 2