Spain Core Inflation Rate YoY Final

Info

History

Chart

Impact:

Low

Source: National Statistics Institute (INE)

Next Release:

Date:

Forecast: 2.2%

Period: Jun

What Does It Measure?

The Spain Core Inflation Rate YoY Final measures the annual change in prices for goods and services, excluding volatile items like food and energy, to provide a clearer picture of underlying inflation trends. This indicator primarily focuses on consumer prices, assessing the cost of living and inflationary pressures within the Spanish economy.

Frequency

This report is released on a monthly basis, typically issued around the 15th of the month as a final figure, reflecting the overall inflation data for the previous month.

Why Do Traders Care?

Traders monitor the Core Inflation Rate as it significantly impacts monetary policy decisions, influencing interest rates, currency valuation, and market sentiment toward stocks and bonds. A higher-than-expected reading can lead to expectations of tighter monetary policy, often strengthening the Euro, while lower readings might suggest a dovish outlook, potentially weakening the currency.

What Is It Derived From?

The Core Inflation Rate is calculated using comprehensive price data collected from a variety of goods and services, excluding food and energy, based on surveys conducted by the National Statistics Institute of Spain. It employs a weighted average that adjusts for seasonal volatility to arrive at a market-sensitive inflation measure.

Description

The Spain Core Inflation Rate YoY Final specifically reflects the year-over-year percentage change in core consumer prices, focusing on long-term inflation trends by ignoring seasonal fluctuations associated with food and energy prices. This approach makes it a crucial tool for assessing economic stability and purchasing power.

Additional Notes

This indicator serves as a leading measure of inflationary pressures and can provide insight into consumer behavior and economic health compared to other related metrics such as the headline inflation rate. It plays a vital role in shaping expectations around the European Central Bank's monetary policy, with broader implications for financial markets across the eurozone.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bullish for Euro, Bearish for Stocks. Lower than expected: Bearish for Euro, Bullish for Stocks. A hawkish tone: Signaling higher interest rates or inflation concerns, is usually good for the Euro but bad for Stocks due to higher borrowing costs.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Time	Actual	Forecast	Previous	Surprise