Spain Inflation Rate Confirmed at 4-Month Low of 2.9%

Spain's annual inflation rate was revised to 2.3% in January 2026, below the preliminary 2.4% reading and down from 2.9% in December. This was the lowest reading since June 2025, extending the disinflation trend to three straight months, largely due to a slowdown in electricity prices (3.7% vs 12.6% in December) and a decline in fuel costs, such as gasoline (-7.4%) and diesel (-5.9%). Moreover, prices dropped for clothing & footwear (-1.9% vs 0.2%). The core inflation rate, which excludes volatile components like food and energy, stood at a one-year high of 2.6% for the third month, in line with the initial estimate. Considering the EU-harmonised, the CPI rose 2.4% on the year, down from the preliminary reading of 2.5% and below 3% in the prior month. Monthly, the CPI fell by 0.4%, after a 0.3% increase in December, as initially estimated; and the EU harmonized decreased by 0.8%, after a 0.3% rise in the month before, slightly exceeding the preliminary estimate of a 0.7% decline.

Spain’s annual inflation rate fell to 2.4% in January 2026 from 2.9% in December, slightly exceeding analysts’ estimates of 2.3%, preliminary estimates showed. This marked the third consecutive slowdown in price growth and the lowest inflation reading since June 2025. The moderation in inflation reflects a slower rise in electricity prices compared with January 2025, along with declines in fuel and lubricant costs for personal vehicles, which had increased in the same month a year earlier. The core inflation rate, which excludes volatile components like food and energy, stood at a one-year high of 2.6% for the third straight month. Considering the EU-harmonised, the CPI rose by 2.5% on the year, after a 3% increase in December, slightly above forecasts of 2.4%. Monthly, the CPI fell 0.4% after a 0.3% increase in December, versus expectations of a 0.3% decline. The EU-harmonised index fell 0.7%, following a 0.3% rise in December and slightly less than the anticipated 0.8% drop.

Spain’s annual inflation rate was confirmed at a four-month low of 2.9% in December 2025, easing for the second consecutive month from 3.0% in November. The slowdown was mainly driven by softer price growth in transportation (1.8% vs 2.3% in November), on account of fuels, and recreation and culture (0.5% vs 1.2%). Meanwhile, the index for food & non-alcoholic beverages rose 3%, faster than November’s 2.8%, reflecting higher prices for vegetables and oils and fats, which had declined in December 2024. The core inflation rate, which excludes volatile components like food and energy, stood at a one-year high of 2.6% in December, as initially estimated, unchanged from November. Considering the EU-harmonised, the CPI rose 3% on the year, in line with preliminary estimates, following a 3.2% increase in November. Monthly, the CPI rose by 0.3%, after a 0.2% increase in November; and the EU harmonized went up 0.3%, after being flat in the month before, both matching initial estimates.