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Spain Confirms 2.9% December Inflation as 2025 Averages 2.7% While Argentina’s Core Pressure Tempers Disinflation

January readings will reflect new CPI bases that may nudge short‑term rates without altering the underlying trend.

Overview

  • Spain’s statistics agency reported a 2.9% year‑over‑year rate in December and a 2025 average CPI of 2.7%, with core inflation steady at 2.6%.
  • The Economy Ministry noted prices are rising more slowly than wages, pointing to gains in purchasing power at year‑end.
  • Spain will shift its CPI to a 2025 base and adopt ECOICOP v2 starting with the January release, aligning with EU requirements.
  • Argentina’s monthly inflation quickened to 2.8% in December, the highest in nine months, as core rose to about 3% and services showed persistent pressure.
  • Argentina’s updated CPI from January increases the weight of services, which could lift monthly prints; markets have favored inflation‑linked debt and early‑2026 auctions validated yields near 50%, with zero‑monthly inflation now seen more likely in 2027.