Spanish inflation in positive territory for the first time since June 2014

Flash inflation data released by the statistical office INE on Thursday showed that Spain's consumer price inflation exceeded the 0 percent threshold for the first time since June 2014. In September the HICP increased by 0.1 percent year-on-year, less than the expected increase of 0.2 percent and compared to August's 0.3 percent decrease.

Flash consumer prices advanced more-than-expected by 0.3 percent year-on-year in September, reversing a 0.1 percent drop in August. Prices were expected to grow 0.2 percent. On a monthly basis, consumer prices edged up 0.1 percent, slightly slower than the 0.2 percent rise economists had expected.

Gradual rise has been seen, with harmonized CPI went progressively from -1.2 percent YoY in April to -0.3 percent in August, and finally above 0 percent in September. In the July to September quarter, the inflation rate increased by 0.7ppt, an encouraging sign.

Geoffrey Minne, Economist at ING, notes that in September, the Spanish HICP rate exceeded the 0% threshold for the first time since June 2014 and between July and September, the inflation rate increased by 0.7ppt, a sign that ECB policy might be working after all"