Flash estimates show Spanish annual inflation beats forecasts, remains stable in November

Spain's National Statistics Institute (INE) released on Tuesday flash estimate of Spain's Consumer Price Index (CPI) and Harmonised Index of Consumer Prices (HICP). According to the report, Spain's consumer prices (CPI) advanced 0.7 percent year-on-year in November, the same as in the previous month and beating market expectations of 0.5 percent rise.

It was the third straight month of gains and the highest inflation rate since August 2013.  It is noteworthy that inflation remained stable despite the drop in the prices of fuels (gasoil and gasoline).

Spanish EU-harmonised consumer prices (HICP) rose by 0.5 percent year-on-year in November, in line with markets forecast and unchanged from October. Historical data shows inflation rate in Spain averaged 6.86 percent from 1955 until 2016, reaching an all time high of 28.43 percent in August of 1977 and a record low of -1.37 percent in July of 2009.

On a monthly basis, consumer prices rose by 0.3 percent, better than forecasts for a 0.2 percent rise and compared to a 1.1 percent rise in the previous month. While harmonised consumer prices went up by 0.2 percent after climbing by 0.8 percent the previous month.

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