SPANISH August consumer prices fell less than expected on the year after a record drop in July, as base effects from last year's spikes in energy and food prices diminished, data showed yesterday.
Spain's European-Union harmonised consumer price index fell 0.8 percent year-on-year compared to a record decline of 1.4 percent in July. Analysts had forecast a 1.0 percent fall. (Spain's figure) has been a surprise on the upside, as we saw in Germany. This will mean there is an upside risk to the euro zone data when we get the figures on Monday, said economist at BNP Paribas Eoin O'Callaghan. Recent energy price volatility and tentative signs of economic recovery in Europe led EU Monetary Affairs chief Joaquin Almunia to warn of a return of inflation risks. In the medium and long term, if we look at the commodities market and oil, prices have started to rise again there and in the medium term there will be risks of inflation which we can't ignore, he said.