Spanish inflation accelerates unexpectedly, expanding on the ECB

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Spanish inflation has accelerated, undermining hopes that the eurozone’s record value will peak and increasing pressure on the European Central Bank to act.

The acceleration, to 8. 5% in May from 8. 3% last month under the European Union’s harmonized criteria, came as emerging fuel costs offset a drop in electric power that pushed inflation to record levels across the continent for months.

An indicator of underlying value gains, which excludes volatile items such as food and energy, accelerated as much as 4. 9%.

The figures offer a first look at trends in the 19-member eurozone, with German knowledge expected to show later on Monday that inflation has accelerated to 8. 1% and Belgium is also due to release May’s figures. A first reading for the eurozone will take office on Tuesday.

Germany’s benchmark borrowing prices prolonged their rise, raising the 10-year yield to 10 fundamental issues to 1. 07%, from May 18. Meanwhile, money markets increased their bets on the speed of the ECB’s tightening, setting 114 fundamental issues for the year. end rate hikes, a jump of 4 fundamental issues since Friday.

ECB officials will raise loan prices in July and end negative interest rates in the next september resolution. Reinforcing the plan, unveiled last week through President Christine Lagarde, lead economist Philip Lane said in comments released Monday that rate increases of a quarter-point at meetings were a “benchmark pace. “

As Spain sees inflation hit a four-decade high in March, the government is in the process of clarifying the main points of a plan to cap the costs of herbal fuel for electric power generation, a move it says will ease upward pressure on costs.

The Socialist-led coalition government has launched a series of measures to help consumers, adding a subsidy to the cost of fuel at pumps, an increase in the minimum wage, direct subsidies to truckers and monetary subsidies for some farmers.

A separate survey through the European Commission showed that Spanish inflation expectations fell in May, while economic confidence rose, ending two months of decline.

(Updates with the EU Economic Confidence Measure in paragraph)

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