Spain's Inflation Hits 2.8% in December, Highest Since July, Amid ECB Rate Cut Considerations

Dec 30, 2024, 08:30 AM

Spain's inflation rate rose to 2.8% in December, surpassing the forecasted 2.6% and marking the highest rate since July. The increase was primarily driven by rising fuel prices and, to a lesser extent, increased leisure costs. The Consumer Price Index (CPI) climbed four tenths from November's 2.4%. The underlying inflation rate, excluding volatile items like food and energy, also increased to 2.6%. Despite the monthly uptick, the annual average inflation for 2024 stood at 2.8%, a decrease from the 3.6% average of 2023. The rise in inflation supports the case for gradual interest rate cuts by the European Central Bank (ECB).