FRANKFURT – Inflation in Spain surged to double digits in June, in yet another upside surprise in eurozone price pressures, the Spanish statistics office showed Wednesday.
The annual rate of inflation, harmonized for European statistical purposes, rose to 10 percent in June from 8.5 percent in May. The national reading was 10.2 percent — more than a full percentage point above the 9 percent median forecast in a Reuters survey of analysts.
Underlying inflation, which strips out volatile components of energy and food prices, also accelerated significantly to 5.5 percent from 4.9 percent in the previous month.
Germany is scheduled to release later Wednesday inflation data for June, with analysts expecting an 8.8 percent increase. Eurozone data is due on Friday. Ahead of the Spanish release, it was expected to come in at 8.4 percent, up from 8.1 percent previously.
Another upside surprise in eurozone data could shake up the European Central Bank’s interest rate bets. President Christine Lagarde pointed on Tuesday to “the option to act decisively on any deterioration in medium-term inflation, especially if there are signs of a de-anchoring of inflation expectations.”