Spain's inflation drops to 3.2% in April

Spain's annual inflation eased to 3.20% in April from 3.40% in March 2026, while the month-on-month Consumer Price Index rose 0.40% in April, meeting expectations. The print was slightly above estimates on the annual figure, producing a mixed signal for markets: softer headline inflation could temper ECB rate-hike expectations and weigh on the euro, but the above-estimate reading leaves some upside to rate expectations. Primary market to watch is EUR/USD, which could see volatility as traders reassess Eurozone policy odds and growth/inflation divergence within the bloc.