Spanish final HICP inflation likely rose in September on fuel price rise

Spain’s final HICP inflation is expected to have come in the same as flash estimate in September. According to a Societe Generale research note, Spain’s final HICP inflation is expected to have confirmed the flash reading of 0.1 percent year-on-year. This would be the first positive reading since June 2014.

The Spanish official statistical institute, INE, does not give any details in its flash estimate press release, and therefore would have to wait for the final release for looking at the details of the main components.

Nonetheless, the flash report mentioned that the rise in inflation is predominantly due to increase in the prices of fuel, along with higher prices of electricity. Spain’s HICP inflation is likely to continue rebounding in the future and accelerate above 1 percent in early 2017, noted Societe Generale. The rebound in the country’s headline print is expected to be mainly due to base effects from energy prices.