Escrivá warns price hikes will persist into 2027
Executive summary: The Bank of Spain, via Minister Escrivá, announced that core inflation will rise above forecasts by 0.3pp in 2026 and 0.6pp in 2027 because of supply‑chain contagion. Higher-than‑expected inflation may prompt the ECB to keep rates tighter for longer, raise costs for companies, and squeeze household purchasing power. Banco de España, Minister José Luis Escrivá, European Central Bank, Spanish businesses, consumers. ECB will watch upcoming CPI releases; if inflation stays elevated it may maintain or raise rates, while firms adjust pricing and wage negotiations proceed.
The Bank of Spain warned that inflation will be higher than expected due to a contagion of price increases across the supply chain. Core inflation, excluding energy, is projected to exceed forecasts by 0.3 percentage points in 2026 and 0.6 points in 2027. This outlook suggests persistent cost pressures that could influence ECB policy and affect business pricing strategies.
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