Spain’s CPI inflation in March was 0.1% MoM and 2.3% YoY, down from 3.0% YoY in February and below expectations of 2.7% YoY, driven by lower electricity prices.

• Core inflation (excluding non-processed food and energy) was 2.0% YoY, down from 2.2% in February.
• Declines in fuel, lubricant, and leisure prices contributed to the YoY moderation.
• HICP inflation is projected at 0.7% MoM and 2.2% YoY, down 0.7 ppts from February’s 2.9% YoY rate.