Spanish Inflation Eases More Than Expected in Boost for ECB




  • In Business
  • 2022-11-29 09:03:32Z
  • By Bloomberg
 

(Bloomberg) -- Spanish inflation eased for a fourth month and by more than expected, reinforcing expectations for a wider slowdown in European prices and offering some comfort to the government whose aid measures have brought record budget spending.

Most Read from Bloomberg

  • Apple to Lose 6 Million iPhone Pros From Tumult at China Plant

  • Next Covid-19 Strain May be More Dangerous, Lab Study Shows

  • There's a Job-Market Riddle at the Heart of the Next Recession

  • Stocks Hit by Fedspeak as China Woes Boost Havens: Markets Wrap

Consumer prices advanced by 6.6% from a year ago in November, down from the previous month's 7.3% advance, the statistics institute said Tuesday. That's below the 7.1% median estimate in a Bloomberg survey of economists.

The slowdown was driven by declines in electricity and fuel costs and an only moderate rise in clothing. A gauge of underlying prices, however, which excludes volatile items like energy and food, ticked up to 6.3%.

Such measures may take on more significance even as headline inflation rates across the region start to ease, according to Vice President Luis de Guindos.

"The signal we have to keep following is the evolution of underlying inflation," he told an event in Spain on Tuesday. "This will tell us how inflation can evolve in coming months."

What Bloomberg Economics Says...

"Today's reading provides some confirmation that energy pressures have started to ease in parts of the euro area, pointing to a decline in the headline reading."

--Ana Luis Andrade. For full REACT, click here

Germany, the continent's biggest economy, will release figures later Tuesday that are expected to show that price gains also eased, while remaining in double digits.

Initial data from North Rhine Westphalia, the country's most populous state, showed headline inflation slowing. Prices dropped 0.8% on the month -- the first decline since June. Baden Wuerttemberg, Bavaria, Brandenburg and Hesse went the same way.

The euro-zone is seen reporting a slight moderation the following day. The figure will help the European Central Bank decide whether a third straight three-quarter-point hike in interest rates is required to curb unprecedented price pressures in the 19-nation currency bloc.

In Spain, slower inflation will come as a relief for Prime Minister Pedro Sanchez, who's put in place some of Europe's strongest tax and energy-price measures, costing more than €35 billion ($36.6 billion), in an effort to ease the cost-of-living crisis.

--With assistance from Joel Rinneby, Ainhoa Goyeneche and Charles Penty.

(Updates with ECB's Guindos in fifth paragraph, German regional readings in seventh)

Most Read from Bloomberg Businessweek

  • Car Price Divergence Hints at More Painful Inflation Ahead

  • Apple's Reliance on China Grows Perilous With Chaos in iPhone City

  • Professor Behind Effective Altruism on What SBF's Fall Means

  • The Robot Tractors Are Coming, Just as Soon as We Crush a Few Bugs

  • Elon Musk Keeps Quoting Elon Musk About His Genius

©2022 Bloomberg L.P.

COMMENTS

More Related News

Adani Group Stocks Plunge, Extending Rout After Hindenburg Report
Adani Group Stocks Plunge, Extending Rout After Hindenburg Report

(Bloomberg) -- Shares of Adani Group's companies have lost almost $45 billion in market value in less than two sessions, as a selloff sparked by US short...

Thai Finance Ministry Sees Sustained Baht Gains on Tourism Boom
Thai Finance Ministry Sees Sustained Baht Gains on Tourism Boom

(Bloomberg) -- The baht is set to extend its rally as the Chinese reopening buoys the outlook for tourist arrivals, helping propel Thailand's growth this...

Chip Stocks Extend Gains in Asia, Defying Intel
Chip Stocks Extend Gains in Asia, Defying Intel's Sales Warning

(Bloomberg) -- Asian semiconductor stocks rose Friday, dismissing one of the worst-ever outlooks from stalwart Intel Corp. as investors look toward an...

Putin Plans New Ukraine Push Despite Losses as He Prepares for Years of War
Putin Plans New Ukraine Push Despite Losses as He Prepares for Years of War
  • World
  • 2023-01-27 05:00:24Z

(Bloomberg) -- Nearly a year into an invasion that was supposed to take weeks, Vladimir Putin is preparing a new offensive in Ukraine, at the same time...

Hunt to Rule Out Tax Cuts While Touting UK
Hunt to Rule Out Tax Cuts While Touting UK's Brexit Potential

(Bloomberg) -- Chancellor of the Exchequer Jeremy Hunt is expected to disappoint investors and his critics in the UK ruling party Friday by rejecting calls...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business