Spain inflation climbs to near 5%, the highest in over three years - investingLive

The breakdown The numbers are running hotter than expected with headline annual inflation climbing to 4.9%, its highest since February 2023. Meanwhile, core annual inflation is also seen accelerating further from 2.9% to 3.1% in September. That suggests the rise in price pressures is starting to become broader, and not just isolated within energy prices. The jump here marks the highest level for core annual inflation since March 2024. This may just be one reading but if the trend in Spain feeds through to the region more broadly, it could very well push expectations for a quicker move by the ECB on their next policy step. As things stand, markets are pricing in roughly 50% odds of a 25 bps rate hike for October next.