Spain's inflation has accelerated more than expected and is further away from the ECB's 2% target, which reinforces the central bank's reasons for continuing to raise interest rates. According to data released on Tuesday, consumer prices rose 5% year on year in September, up from 4.6% in August. This is the highest level since February 2023, and higher than analysts' median estimate of 4.9%. Statistics agencies say the sharp rise in fuel and travel package prices is the main reason. The indicator that measures underlying price pressure also rose more than expected.

Spain's inflation has accelerated more than expected and is further away from the ECB's 2% target, which reinforces the central bank's reasons for continuing to raise interest rates. According to data released on Tuesday, consumer prices rose 5% year on year in September, up from 4.6% in August. This is the highest level since February 2023, and higher than analysts' median estimate of 4.9%. Statistics agencies say the sharp rise in fuel and travel package prices is the main reason. The indicator that measures underlying price pressure also rose more than expected.