Spain September preliminary CPI +4.9% vs +4.6% y/y expectedPrior +4.3%Spain September preliminary HICP +5.0% vs +4.9% y/y expectedPrior +4.6%The breakdownMore to follow...What does the data measure?Spain’s CPI tracks changes in consumer prices, while HICP uses a harmonised methodology that makes Spain’s inflation rate comparable with other euro area countries.Why do markets care?Spain is one of the first major euro area economies to report September inflation, making the release an early signal for where the broader Eurozone CPI numbers could be heading.How does this fit the current backdrop?Headline inflation has risen quickly, climbing from 3.6% in July to 4.3% in August, with another increase expected in September. However, core inflation eased to 2.9% in August, suggesting much of the latest acceleration has so far been concentrated in energy rather than broad-based underlying inflation.Energy prices remain the main complication for the euro area inflation outlook. The ECB is trying to distinguish between a temporary energy shock and signs that those price increases are feeding more persistently into wages, services and underlying inflation. This article was written by Justin Low at investinglive.com.