Spain’s CPI was unchanged at 0.0% MoM (vs 0.1% MoM expected) in May, while the annual rate slowed to 1.9% YoY from 2.2% YoY in April, the lowest since October 2024.

• The decline was mainly due to falling leisure, culture, and transport prices, and a smaller increase in electricity compared to May 2024.
• Core inflation fell to 2.1% YoY in May, down from 2.4% YoY in April.
• HICP inflation also eased to 1.9% YoY from 2.2% YoY, also the lowest since October 2024, with a -0.1% MoM (vs 0.0% MoM expected) decline.