Spain’s CPI increased 0.4% MoM and 2,8% YoY in December, above the expectations of 0.3% MoM and 2.6% YoY. Core inflation accelerated from 2.4% YoY to 2.6% YoY. Fuel prices and leisure & culture prices were the strongest areas of inflation this month. HICP inflation also came in above expectations at 2.8% YoY vs 2.4% in November and 2.6% YoY expected.

Inflation was a bit hot in Q4. The monthly rates in the final quarter of 2024 averaged 0.4% MoM, comparable to the flare up in price growth at the end of Q1 2024.