Spain August Inflation Confirmed at 4.3%

Spain’s annual inflation rate rose to 4.3% in August 2026 from 3.6% in July, confirming preliminary estimates. It marked the highest inflation rate since February 2023, driven by rising transport costs (9.5% vs 6.2% in July), particularly diesel (30.3% vs 15.7%) and petrol (16.9% vs 7.3%), amid supply disruptions linked to the ongoing conflict in the Middle East. Housing and utilities (6.4% vs 5.7%) and food and non-alcoholic beverages (2.3% vs 1.6%) also recorded faster price increases. On a monthly basis, the CPI rose by 0.7%, following a 0.3% increase in the previous month. The EU-harmonized inflation rate was revised slightly higher to 4.6% from an initial estimate of 4.5%, up from 3.9% in July. This was also the highest level since February 2023 and more than double the European Central Bank’s 2% medium-term target. Meanwhile, core inflation, which excludes volatile components such as unprocessed food and energy, edged down to 2.9% in August from 3.0% last month.

Spain’s inflation rate accelerated to 4.3% year on year in August 2026, up from 3.6% in July and slightly above market expectations of 4.2%, according to a preliminary estimate. It was the highest inflation rate since February 2023, driven largely by rising energy prices following an escalation in US-Iran tensions that pushed crude oil prices higher. The EU-harmonized inflation rate also climbed to 4.5%, its highest level since early 2023 and more than double the European Central Bank’s 2% medium-term target. Meanwhile, core inflation, which excludes volatile components such as unprocessed food and energy, edged down to 2.9% in August.

Spain's annual inflation rate was revised slightly higher to 3.6% in July 2026 from a preliminary estimate of 3.5% and June's reading of 3.2%. This marked the highest rate since May 2024, driven mainly by fuel prices, particularly diesel (15.7% vs 14.1%) and petrol (7.3% vs 1.3%), amid the partial closure of the Strait of Hormuz. Electricity prices also rose faster (8.4% vs 6%) due to strong consumer demand during the successive heatwaves. The core inflation rate, excluding unprocessed food and energy, also rose to 3.0% from 2.9% in June, in line with estimates and matching May’s near two-year peak. The EU-harmonized annual rate hit 3.9%, its highest since February 2023, up from 3.6% in June and above the preliminary estimate of 3.8%. On a monthly basis, consumer prices rose by 0.3%, up from the earlier estimate of 0.2%, but easing from the 0.6% increase recorded in June. The harmonized index was flat, compared to the earlier reading of a 0.1% decrease and after a 0.6% rise in June.