Spanish Inflation Hits Near Three-Year High

Spain's inflation rate has hit its highest point in over three years, climbing to 4.9% in September, surpassing expectations of a 4.6% increase. This is according to preliminary data released by InvestingLive. The harmonized index of consumer prices (HICP) also saw a rise, reaching 5.0%, the highest since February 2023.

The acceleration in inflation is not limited to energy prices alone, with core annual inflation increasing from 2.9% to 3.1%. This suggests that price pressures are becoming more widespread and not just isolated within energy costs. The jump marks the highest level for core annual inflation since March 2024.

This development may have implications for the European Central Bank's (ECB) next policy step, with markets pricing in roughly 50% odds of a 25 basis point rate hike for October.