Spanish HICP inflation average for 2015 to remain negative

Flash Spanish HICP inflation was encouraging as it increased to 0.0% in June versus -0.3% yoy in May. As the INE doesn't give a breakdown of the components with the flash release, the final release is awaited to have a look at the components. 

However, the INE did specify that the rise in inflation was primarily attributable to an increase in electricity, food and non-alcoholic beverages prices. 

"Looking ahead, Spanish HICP inflation should remain in negative territory, averaging -0.5% for 2015 and 1.0% in 2016. The core metric should remain around 0.1% for 2015 and should pick up to 0.7% in 2016", says Societe Generale.