Flash June Spanish inflation to remain flat at 0.0%

The flash July Spanish HICP inflation is expected to remain unchanged at 0.0% yoy in July. The energy component is likely to increase led by higher gasoline prices (+0.9% mom) alongside some softness in food prices. Spanish HICP inflation prices paid for services in June remained high after a jump seen in May pushing the core and headline higher. Prices paid for transport saw a fall as the tourist season commenced, but the biggest push in prices paid for services came from prices paid in hotels, restaurants and cafes alongside higher prices for education. 

"Spanish HICP inflation should remain in negative territory until the end of the summer, averaging -0.3% for 2015 and 1.3% in 2016. The core metric should be 0.2% in 2015 before rising to 0.8% in 2016," says Societe Generale.