EZB8RISK / Market Briefing

Spain's story remains anchored in sticky inflation, with EU-harmonised price growth at elevated levels keeping the ECB's higher-for-longer stance in focus. Consumer strain persists

Spain's story remains anchored in sticky inflation, with EU-harmonised price growth at elevated levels keeping the ECB's higher-for-longer stance in focus. Consumer strain persists, as retail sales have now slipped for consecutive months, pointing to households tightening up under cost pressure. Madrid's cap on the next regulated gas price hike offers a modest buffer, though headlines around protests and government activity suggest political tension over living costs is still simmering.

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