Spain June CPI Holds at 3.2%, Core Inches Down to 2.9%

Spanish inflation held steady in June, with headline annual CPI unchanged at 3.2% from May's reading. Core inflation eased only marginally, dipping to 2.9% from 3.0% in May.

The print keeps core prices well above the ECB's 2% target. That is one number policymakers in Frankfurt will be watching as they weigh their July rate decision.

Combined with data from other euro-area economies, the June reading still gives the central bank room to pause at its July meeting, several economists said. The real uncertainty now centers on September, particularly with oil prices ticking higher and the geopolitical backdrop shifting.

Rising oil and bond yields are reviving stagflation concerns that many had hoped were fading for the remainder of the year. Spain's inflation trend over the past twelve months shows headline CPI running between 1.8% and 3.6%, with the June figure landing in the middle of that range.