May preliminary CPI matched April’s 3.2% annual rise, undershooting the 3.4% consensus and easing pressure on the ECB.
Spain’s May preliminary consumer price index rose 3.2% year-over-year, unchanged from April and below the 3.4% forecast, according to the release. Core inflation metrics also softened, with HICP climbing 3.0% versus a 3.6% expectation and April’s 3.5% print.
Analysts had anticipated a slight uptick in headline inflation after April’s stable reading, citing base effects and energy price adjustments. The softer-than-expected data aligns with broader eurozone trends, where inflation has shown signs of moderation ahead of the European Central Bank’s June meeting.
The release did not detail immediate market reactions, but the euro and Spanish bond yields may see limited volatility as traders digest the implications for ECB policy.