1 Min Read
MADRID (Reuters) - The Bank of Spain said on Thursday it expected consumer price rises, which hit four-year highs at the beginning of the year, to ease through 2017 as the effect of high oil prices wears off.
"The evolution of oil prices through 2016, which affects the energy component of consumer prices, largely explains the rise in annual prices in the first few months of 2017, and so a slow down is expected for the rest of the year," the Bank said.
Inflation was expected to hold below 1.5 percent in 2018, the central bank said.
Reporting by Paul Day; Editing by Sonya Dowsett