Overview

• The Instituto Nacional de Estadística (INE) reports Spain's annual inflation rate dropped to 2.2% in April, the lowest since October 2024.
• Month-on-month inflation rose by 0.6%, with reduced electricity, gas, and fuel costs contributing to the moderation in the consumer price index.
• Core inflation, which excludes unprocessed food and energy, increased to 2.4%, ending a three-month streak of declines.
• April marks the second consecutive month of year-on-year inflation declines, reflecting easing price pressures for households and businesses.
• Spain is projected by the IMF to lead developed economies in growth for 2025, maintaining robust expansion alongside moderate inflation.