Spanish CPI rises past forecasts in June

The cost of living in Spain increased more sharply than expected in July.

Spanish consumer prices advanced at a 1.5% year-on-year pace in July, the same as in June, according to the national statistics office, INE.

In terms of monthly rates of change, headline CPI was 0.7% lower.

INE highlighted two aspects of Friday's report, the stability seen in the prices of food and non-alcoholic drink versus the rises seen one year ago and the smaller drops in the cost of gasoil and gasoline versus 2016.

However, in harmonised terms, the basis on which the European Central Bank tracks inflation across the euro area, CPI was 1.7% higher, versus a 1.6% gain in the month before.

Economists on the other hand had anticipated a dip to an annual rate of 1.5%.

versus June, harmonised CPI was down by 1.2% (consensus: 1.3%).

Eurozone-wide CPI scheduled for release on 31 July was expected to reveal a dip in headline CPI within the bloc from 1.3% in June to 1.2% for July.

In a separate release, INE revealed that Spain's gross domestic product accelerated to a 0.9% quarter-on-quarter clip over the three months to June, as anticipated.

That was up from the 0.8% pace observed during the first quarter.