Spain Inflation Rate Unexpectedly Accelerates

Spain’s annual inflation rate jumped to 3.3% in March 2026, its highest since June 2024, compared to 2.3% in February and expectations of 3.7%, according to preliminary data. The increase was largely driven by higher prices for fuels and lubricants for personal vehicles, reflecting the impact of the war with Iran. Electricity prices also contributed, as their decline was smaller than a year earlier, while heating oil prices rose after falling in March 2025. Core inflation, which excludes food and energy, stood at 2.7%. On a harmonised EU basis, annual inflation rose to 3.3% from 2.5%, below forecasts of 3.9%. On a monthly basis, consumer prices increased 1% after a 0.4% rise in February, missing expectations of a 1.2% gain, while the harmonised index rose 1.5% following a 0.4% increase.

Spain’s annual inflation rate stood at a seven-month low of 2.3% in February 2026, matching the preliminary estimate and unchanged from January. Slower price growth in housing and utilities (1.9% vs 2.7% in January), on account of electricity prices (0.3% vs 3.7%), helped offset upward pressure from food and non-alcoholic beverages (3.2% vs 3%), restaurants and hotels (4.8% vs 4.5%), and transportation (0.1% vs -0.1%). The core inflation rate, which excludes volatile components like food and energy, inched up to 2.7% in February, the highest since August 2024, from 2.6% previously. Considering the EU-harmonised, the CPI rose by 2.5% on the year, after a 2.4% increase in January, in line with the earlier estimate. Monthly, the CPI rose by 0.4% after a 0.4% decrease in January; and the EU-harmonised index went up by 0.4%, following a previous 0.8% decline, both matching preliminary estimates.

Spain’s annual inflation rate stood at 2.3% in February 2026, unchanged from January and marking the lowest level in seven months, slightly above analysts' estimates of 2.2%. The ongoing stability in price growth was mainly supported by lower electricity prices compared with February 2025, partly offset by stronger increases in fuels and lubricants for personal vehicles, restaurants and accommodation services, and food and non-alcoholic beverages. The core inflation rate, which excludes volatile components like food and energy, inched up to 2.7% in February, the highest since August 2024, from 2.6% previously. Considering the EU-harmonised, the CPI rose by 2.5% on the year, after a 2.4% increase in January, surpassing forecasts of 2.3%. Monthly, the CPI rose by 0.4% after a 0.4% decrease in January. The EU-harmonised index went up by 0.4%, following a 0.8% decline in January and sightly above estimates of a 0.3% rise.