Spanish inflation to have slowed marginally in November

Spain’s inflation is likely to have slowed in November after improving for six straight months to end-October. According to a Societe Generale research report, inflation in Spain is expected to have slowed marginally to 0.4 percent year-on-year, after coming in at 0.5 percent year-on-year in October.

The weakness is likely to reflect renewed softness in prices of energy in November. Meanwhile, prices of food are expected to have rebounded slightly. The core components, on the other hand are anticipated to have remained stable in November. Spain’s HICP inflation is expected to continue to improve rapidly, with the help of base effects from energy prices. It is likely to peak temporarily at 2 percent early in 2017, stated Societe Generale.