Spain EU-Harmonized Inflation Hits 2023 High

Spain’s EU-harmonized inflation rate jumped to 4.5% year on year in August 2026, up from 3.9% in July and slightly below market expectations of 4.6%, according to a preliminary estimate.

It was the highest since February 2023 and more than double the ECB’s 2% target, driven by a surge in energy prices amid continued fighting in the Middle East.

The data strengthened expectations for an ECB rate hike in September, with markets fully pricing a 25-basis-point increase that would lift the deposit rate to 2.5%.

Investors also see another hike by spring 2027.