Spanish inflation accelerated unexpectedly to 3.

Spanish inflation accelerated unexpectedly to 3.5% in April, surpassing the European Central Bank's 2% target and marking the fastest pace since March. Consumer prices rose faster than economists anticipated, driven primarily by soaring fuel costs. Core inflation, which excludes energy and food items, eased slightly to 2.8%, suggesting energy price spikes remain the primary culprit. This data arrives as the ECB convenes for a two-day policy meeting where officials are expected to hold interest rates steady despite mounting inflationary pressures. Markets are increasingly pricing in rate hikes, with traders fully expecting two quarter-point increases beginning in June and an 80% probability of a third by year-end. Spanish consumers surveyed in March expect prices to climb 4% over the next twelve months, up sharply from 2.5% just one month prior.