Spanish consumer prices surprise sharply to the downside in April

The cost of living in Spain came off the boil a little in April as the prices of fuels and electricity declined.

According to the country's national office of statistics, the annual rate of increase in the country's Consumer Price Index eased from 9.8% for March to 8.4% in April.

That was close to twice the decline to 9.0% anticipated by the consensus.

In month-on-month terms, CPI dipped by 0.1% after surging by 3.0% in March.

On a harmonised basis meanwhile, the year-on-year increase in CPI slipped to 8.3% (Barclays: 8.2%).

German harmonised CPI data due out at 1300 GMT was expected to show that the annual rate of inflation was steady at 7.6% in April.

Euro area-wide figures scheduled for release the next day were expected to reveal a one tenth of a percentage point increase to 7.5%.