UBS On-Air: Paul Donovan Daily Audio 'Pricing pain and paella'

Preliminary February consumer price inflation data is due from France and Spain. The consensus is for a stable y/y rate from France, and a further slowing in Spain. The forecast range making up the consensus is so wide as to render the consensus an indicator of questionable value. Politicians in both France and Spain have focused on supermarket food price increases in recent weeks. Farm prices are rising less than consumer prices, with profit expansion down the food chain adding to inflation.