- Prior +2.3%
- HICP +2.5% vs +2.3% y/y expected
- Prior +2.4%
The main thing to watch is core annual inflation and that is seen at 2.7%, a step up from the 2.6% reading in January. The trend for core prices is looking rather dicey for Spain as it is moving upwards since the middle of last year (graph below). And besides Germany, this remains another spot in which price pressures are keeping the ECB on their toes for now.
The data here won’t be one to compel the ECB to move away from the sidelines any time soon. Now, let’s watch for German state readings to see what that has to offer later in the day. EUR/USD is up 0.2% to 1.1818 currently, with the dollar slightly softer to start the session.
