We just received Spain January preliminary consumer prices data, all measures surprised to the upside while the Y/y figues came in faster than in December
Spain headline inflation ticked at 5.8% Y/y vs. est. 5.0%, HICP came in at 5.8% Y/y vs. est. 4.8%. Headline January prices beat the highest forecast in the range of projections
Wires have been noting the relevancy of the data as the metric leads the broad EU inflation print. The chart below shows Spain CPI Y/y advanced by 3 months vs the EU equivalent
The release saw swaps market raising bets on the ECB policy rate. The July tenor implied rate jumped closer to 3.4% vs 3.3% prior to the announcement. Faster inflation in Spain affirms hawkish expectation on the ECB ahead of the Thursday meeting
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