Spanish Preliminary HICP drops sharply to 3.1% YoY in March vs. 4.3% expected
|- The annual HICP in Spain declined to 3.1% in March.
- EUR/USD is holding higher ground near 1.0850 on the dismal Spanish data.
According to the latest data published by the Instituto Nacional de EstadÃstic (INE) on Thursday, inflation in Spain decelerated to 3.1% year-on-year (YoY) in March, compared with the previous month's unexpected jump to 6.0% and missing the market's expected forecast of 4.3%.
On a monthly basis, the Spanish Harmonized Index of Consumer Prices (HICP) measure fell to 1.1% in March from 0.9% recorded in February. The expectations were for a 1.6% reading.
Meanwhile, the annualized Consumer Price Index (CPI) in the fourth largest euro area economy fell sharply to 3.3% vs. 3.8% expected and 6.0% previous.
The Spanish monthly CPI declined to 0.4% in March vs. 0.65% expected and the February print of 0.9%
Spain has been routinely seen as a 'bellwether' for broader Eurozone inflation with a lead of about four months.
Market reaction
EUR/USD showed little to no reaction to the Spanish inflation data. The pair is trading at 1.0842, modestly flat on the day.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.