Spain Harmonised 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 Harmonized Inflation Rate YoY Final measures the percentage change in the prices of a basket of goods and services that consumers purchase compared to the same month in the previous year. It focuses primarily on inflation trends within the economy, assessing the price stability and purchasing power over a year.

Frequency

This indicator is released monthly, with the final figures typically published around the end of the month following the period being reported.

Why Do Traders Care?

Traders pay close attention to the Harmonized Inflation Rate as it provides critical insights into price levels that affect consumer behavior, interest rates, and monetary policy decisions. An unexpected rise in inflation can lead to increased yields on government bonds and a stronger currency, while lower-than-expected inflation may signal economic weakness, influencing stock prices negatively.

What Is It Derived From?

The Harmonized Inflation Rate is derived from the calculation of the prices of a standardized basket of goods and services collected through surveys across various sectors, including food, housing, transportation, and healthcare. This process employs a mix of data collection methodologies, ensuring consistency across European Union countries for more comparable results.

Description

Preliminary reports of the Harmonized Inflation Rate are based on early data and are subject to revisions, while final reports reflect a more accurate assessment of price changes. This indicator typically adopts a Year-over-Year (YoY) measure, which is preferred for its ability to reveal underlying long-term inflation trends and eliminate seasonal volatility, aiding traders in making informed decisions.

Additional Notes

The Harmonized Inflation Rate serves as a key measure of consumer price changes and is often viewed as a coincident indicator that mirrors current economic conditions. It relates to broader economic trends by influencing central bank monetary policy and providing insights into inflationary pressures affecting not only Spain but the Eurozone as a whole.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bullish for EUR, Bearish for Stocks. Lower than expected: Bearish for EUR, Bullish for Stocks. Dovish tone: Signaling lower interest rates or economic support is usually good for the EUR but bad for Stocks due to lower 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