Spain Producer Inflation Hits 2022-Peak

Producer price inflation in Spain climbed further to 10.5% in May 2026, a new high since December 2022, from an upwardly revised 8.5% in the prior month. Energy prices remained the main driver (28.2% vs 23.0% in April), pushed by higher costs in electricity production, transmission and distribution, and to a lesser extent gas production and pipeline distribution, partly offset by a sharper decline in oil refining prices. Additional upward pressure came from intermediate goods (6.1% vs 4.1%), on the back of higher chemicals, fertilizers, plastics and rubber costs. Prices for capital goods rose slightly faster (2.2% vs 2.1%) while consumer goods costs slowed (1.3% vs 1.6%). Excluding energy, producer prices surged by 3.5%, compared to 2.7% increase in the previous month. On a monthly basis, producer prices rose by 1%, after an upwardly revised 2% advance in April.

Producer price inflation in Spain spiked to 8.3% year-on-year in April 2026, the steepest since December 2022, from a downwardly revised 3.1% in the prior month. The main upward pressure came from energy prices (22.3% vs 7.1% in March), reflecting higher oil refining prices. This likely fed through to other categories, including intermediate goods (3.8% vs 0.8%), capital goods (2% vs 1.8%), and consumer goods (1.6% vs 1.2%), with increases in both durable (2.9% vs 2.2%) and non-durable items (1.5% vs 1.2%). Excluding energy, producer prices advanced by 2.6%, following a 1.2% increase in March. Compared with the previous month, the PPI rose by 1.7%, slowing sharply from a revised 6.2% jump in the month before. The moderation coincided with a sharp slowdown in oil refining (10.3% vs 46.3%) and a reversal in electric power generation, transmission, and distribution costs (-3.1% vs +13.1%).

Producer prices in Spain increased 3.4% year-on-year in March 2026, the first increase in five months, and the largest in a year, following a 6.9% fall in February. Energy prices surged by 7.9%, 30 percentage points higher than in February, driven by rising costs in electricity generation, transmission, and distribution, as well as petroleum refining and, to a lesser extent, gas production and pipeline distribution of gaseous fuels, reflecting broader upward pressure linked to the war with Iran. Excluding energy, producer prices rose 1.2%, compared to a 0.9% gain in the previous month. Also, intermediate goods were up 0.8%, 0.7 percentage points higher than in February, led by manufacture of basic chemicals, nitrogen compounds, fertilizers, plastics, and synthetic rubber in primary forms. Compared with the previous month, the PPI rose by 6.5%, the largest increase since March 2022, with around half of the rise driven by a 46.3% increase in oil refining prices.