Spanish Inflation Hits Three-Month High at 3.3% due to Food and Gas Prices; German Inflation at 2.2% Reaches Three-Year Low

Spanish inflation increased to 3.3% in April 2024, the highest in three months, due to rising food and gas prices.

Core inflation, which excludes energy and food, decreased to 2.9%.

German inflation remained low at almost three-year lows, with services inflation slowing further.

Inflation rates for Germany in April were reported on Monday.

Month-on-month inflation decreased to 0.7% from 0.8% in March.

Year-on-year inflation was 2.2%, the lowest since May 2021, and slightly below analyst predictions of 2.3%.

The decrease was mainly due to a slowdown in services inflation to 3.4% from 3.7% in March.

Energy prices fell at a slower rate, down -1.2% compared to -2.7% in March as tax cuts ended.

Food inflation increased to 0.5% from -0.7% in the previous month.

Month-on-month inflation was 0.5% in April, up from 0.4% in March.

The European Central Bank (ECB) is considering cutting interest rates this summer due to the economic challenges faced by Spain and Germany.

Both countries have been affected by high interest rates and the cost of living crisis.

Inflation, which has been a concern, appears to be slowing down, but there are still some hurdles to overcome before a rate cut can be implemented.