According to Jinshi Data, Spain's inflation rate dropped to its lowest level in a year this August, with the annual Consumer Price Index (CPI) rising just 2.4%, below economists' median forecasts. The decline in fuel costs and food prices were the primary drivers behind this decrease.
The core inflation rate, which excludes energy and certain food prices, also saw a reduction, falling to 2.7%. Analysts suggest that this trend reflects a broader decline in inflation across the 20 eurozone countries.
With German inflation data expected later today, a similar downward trend is anticipated. This could reinforce market expectations that the European Central Bank (ECB) may continue cutting interest rates, with another rate cut likely on September 12 and potentially one or two more before the year's end.
