Spain September Inflation Climbs to 4.9%, Surpassing Expectations and Pressuring ECB

EUR/USD traded flat near 1.1360 after Spain's preliminary September consumer price inflation accelerated to 4.9% year-on-year, topping forecasts of 4.6% and reaching its highest level since February 2023. The Harmonised Index of Consumer Prices rose to 5.0% against an expected 4.9%, while core inflation advanced to 3.1% from 2.9% in August. Spanish headline inflation previously climbed from 3.6% in July to 4.3% in August. The upside surprise raises policy pressure on the European Central Bank, with markets pricing roughly 50% odds of a 25 basis point rate hike in October.