MNI BRIEF: BoS Revises 25’ CPI Up To 2.5%, 26’ Unchanged
Mar-11 14:11By: Les Commons
European Central Bank+ 1
The Bank of Spain has revised up its 2025 domestic inflation projection for the country to 2.5% (up from 2.1%) due to higher energy prices and has kept unchanged its projection for 2026 and 2027 with prices at 1.7% and 2.4%, respectively.
The national bank has also revised growth up to 2.7% (0.2pp higher) for this year while also keeping it unchanged for the next two years at 1.9% and 1.7%. Internal demand boosted growth more than expected in Q4 2024 and Q1, but it should moderate in the coming quarters, the projections show.
The BoS stressed the huge degree of uncertainty around these projections, but noted that risks are tilted to the downside for growth and to the upside for inflation.
