Bank of Spain Raises Inflation Forecasts on Higher Oil Prices

The Bank of Spain said inflation will be faster than it had anticipated this year and next due to a pickup in oil prices that will also drag down economic expansion.

The acceleration in consumer-price growth, which is currently among the slowest in the 20-nation euro zone, will come even after the European Central Bank raised interest rates for a 10th consecutive time last week. It will also be driven by less favorable base effects and reduced fiscal support for households, the central bank said.