Pantheon Macroeconomics: Rising Prices in Spain Suggest Eurozone Inflation Uptick

Claus Vistesen, Chief Eurozone Economist at Pantheon Macroeconomics, has stated that the continuous inflation surge in Spain indicates a similar trend across the entire Eurozone.

Data from Wednesday revealed that the harmonized CPI annual rate in Spain, the Eurozone’s fourth-largest economy, rose from 2.1% in July to 2.4% in August.

Vistesen noted that the increase in fuel and electricity prices is the main driver behind the inflation uptick, which heightens the possibility of an energy-driven inflation acceleration in the Eurozone.

As inflation rates rise in the North Rhine-Westphalia state of Germany (the most populous federal state with the highest GDP), the upward risks for Eurozone inflation data this week have also increased.