Energy is doing the heavy lifting
Spain’s consumer prices rose 3.5% from a year ago, up from 3.4% in March. Not exactly a jump-scare, but it does show inflation is still sticky enough to keep central bankers and bond traders mildly annoyed.
The Middle East reaches your utility bill
The headline culprit here is energy. The Iran war has pushed energy prices higher, and that tends to ripple through everything from transport to groceries like a domino chain nobody invited.
Why investors should care
A hotter inflation print can keep pressure on European policymakers to stay cautious on rate cuts. And if energy prices keep acting like they’ve had three espressos, you can expect more noise in bonds, currencies, and anything sensitive to interest-rate expectations.
Big picture: inflation may not be roaring anymore, but geopolitics is still the kind of houseguest that shows up late and raises the thermostat.