Final Spanish consumer prices to confirm flash reading

Flash Spanish HICP inflation fell to -0.1% yoy in July after showing signs of recovery in the last five months.

As the INE doesn't give any details of the components with the flash release, the final release is awaited to have a look at the components. However, INE did mention that the dip in inflation was primarily attributed to the drop in energy prices (diesel and gasoline).

"Looking ahead, Spanish HICP inflation should remain in negative territory until the end of the summer, averaging -0.3% for 2015 and 1.3% in 2016. The core metric should be 0.2% in 2015 before rising to 0.8% in 2016", says Societe Generale.