Bank of Spain Doubles Inflation Forecasts on Fallout From War
- Consumer prices seen rising 7.5% this year and 2% in 2023
- Economic-growth outlook also lowered amid price pressures
A big portion of Spain’s household electricity contracts are linked to spot prices, which hit records in March.
Photographer: Angel Garcia/BloombergThis article is for subscribers only.
Spain’s central bank doubled its inflation forecasts for this year and next, while trimming its outlook for economic expansion, as Russia’s invasion of Ukraine fans already-soaring energy costs.
Consumer prices will surge 7.5% in 2022 and 2% in 2023 -- up from previous projections for advances of 3.7% and 1.2%, the Bank of Spain said Tuesday. Futures markets signal the energy spike may start to ease in July, with inflation gradually slowing to 1.6% in 2024 -- below the European Central Bank’s 2% target, it said.