Spain Inflation Rate Unexpectedly Holds Steady at 3.2%

Spain’s annual inflation rate stood at 3.2% in May 2026, matching April's reading and below the expected 3.4%, preliminary data showed. Prices of transport and recreational, sporting and cultural activities exerted upward pressure as declines were smaller than in May 2025, but this was more than offset by falling clothing and footwear prices and by stable food and non-alcoholic beverage prices compared with last year. The core inflation rate, which excludes volatile items such as food and energy, ticked higher to 2.9% from 2.8% in the prior month. Meanwhile, the EU-harmonized annual rate rose further to 3.6%, a new high since June 2024, up from 3.5% in April and in line with expectations. On a monthly basis, consumer prices edged up 0.1%, down from a 0.4% increase in April and slightly below forecasts of a 0.2% rise, and the harmonized index also increased 0.1%, after a 0.7% rise in April and below the expected 0.2% uptick.

Spain recorded an annual inflation rate of 3.2% in April 2026, matching the flash estimate and below March’s 3.4%, the steepest since June 2024. The deceleration in inflation was largely driven by slower housing and utilities price growth (1.9% vs 3.7% in March), mainly because of electricity, following the Government’s anti-crisis package of 80 measures introduced in late March, including VAT reductions on fuel and measures to lower electricity bills. Recreation and culture (0.7% vs 2.4%) also played a role, reflecting cheaper package holidays. Meanwhile, transportation prices continued to rise (6.5% vs 5.3%). The core rate, which excludes volatile items such as food and energy, edged down to 2.8% from 2.9%. Conversely, the EU-harmonised annual rate accelerated to 3.5%, a new high since June 2024, in line with the earlier reading. Monthly, the CPI increased by 0.4%, easing from 1.2% in March, while the EU-harmonized CPI rose 0.7% from 1.7%, both consistent with preliminary figures.

Spain’s annual inflation rate eased to 3.2% in April 2026 from 3.4% in March which was the highest level since June 2024, coming in below forecasts of 3.4%, according to preliminary data. The slowdown was driven by a sharper decline in electricity prices, partly reflecting government measures to cushion the impact of the Iran war, alongside a more moderate increase in package holiday prices compared with April 2025. On the other hand, fuel and lubricant prices for personal vehicles continued to rise amid the conflict in the Middle East. Core inflation, which excludes volatile items such as food and energy, edged down to 2.8% from 2.9%. By contrast, the EU-harmonised annual rate accelerated to 3.5%, a new high since June 2024, up from 3.4% in March and in line with expectations. On a monthly basis, consumer prices rose 0.4%, slowing from 1.2% in March and below forecasts of 0.6%, while the harmonised index increased 0.7%, slightly above expectations of 0.6%, after a 1.7% rise in March.