Spanish HICP inflation rose to -0.8% yoy in March after its reading of -1.2% yoy in February. This leap forward came on the back of higher energy- and food prices. Services- and goods price pressures remained contained and so the core was unchanged at 0.0% yoy.
For April, the same story to play out with energy and food prices leading the march higher, while goods- and services prices should remain rangebound.
"Spanish HICP inflation should remain in negative territory until summer, averaging -0.2% for 2015 and 1.3% in 2016. The core metric should remain at the zero bound for 2015 and only slightly pick up in 2016 to 0.2%", notes Societe Generale.
