- Prior +2.9%
- HICP +2.4% vs +2.5% y/y prelim
- Prior +3.0%
The numbers here are slightly softer than what the initial estimates indicated. And they reflect a material decline in headline annual inflation to start the new year.
That being said, core prices still represent the most important detail in this report and it is the one thing that the ECB focuses on the most. In that regard, core annual inflation in Spain is seen keeping steady in January at 2.6%. That is unchanged from what we saw in December.
As such, core inflation is telling the story that price pressures in Spain are still holding up and keeping above the 2% threshold. That will keep policymakers at the central bank guarded with the story in Germany also shaping up to be a similar one.
