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 Estadístic (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.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
