Spanish Inflation Eases to 4.5%, Core Pressures Persist

Spain's Harmonized Index of Consumer Prices (HICP) rose by 4.5% year-on-year in August, lower than the 4.6% forecast. This marks a slight easing from July's 4.6%, but inflation remains above the European Central Bank's 2% target.

The main drivers of this increase were energy costs, which rose 5.2%, and food prices, up 4.1%. Core inflation, excluding energy and fresh food, remained steady at 4.3%, indicating persistent price pressures.

Economists had anticipated a slight uptick due to base effects from last year, but the actual data suggests that earlier energy price shocks are gradually fading. Services inflation, however, stayed elevated at 4.8%, reflecting strong domestic demand and wage growth.