Spain's Consumer Price Index Holds Steady as Inflation Trends Emerge

The Consumer Price Index (CPI) in Spain remained stable with a year-on-year rate of 23% as of February, according to preliminary data released by the National Institute of Statistics (INE) this past Friday. This maintenance of the CPI comes after three consecutive months of declines, indicating a potential turning point in Spain's inflation landscape. The INE explained that the movement in electricity prices, which saw an increase in February 2025, negatively impacted the CPI's behavior. However, certain factors contributed positively to the inflation rate, such as the increase in fuel and lubricants for personal vehicles, as well as price hikes in restaurants, accommodation services, and non-alcoholic food and beverages. The Ministry of Economy, Trade and Business has underscored that Spain is adhering to the price control roadmap set by the European Central Bank (ECB), which aims for annual inflation growth close to 2%. This measured approach to inflation is beneficial as it allows wages to rise above inflation levels, thereby enhancing purchasing power for families across the nation. Core inflation, which excludes unprocessed food and energy products, has seen a modest rise as well. According to the INE's advance CPI data, core inflation increased by one-tenth of a percentage point to 27% in February, following three months at a steady rate of 26%. Should this rate hold, it would represent the highest core inflation figure since August 2024. On a monthly basis, the CPI registered a rise of 0.4% in February compared to January, marking the largest monthly increase since last October when it rose by 0.7%. The harmonized Consumer Price Index (HICP) also showed a slight increase, with its year-on-year rate rising by one-tenth to 25%, accompanied by a monthly variation of 0.4%. Furthermore, the core inflation of the HICP is estimated to stand at 28% for February. The definitive CPI data for February will be officially released by the INE on March 13, providing further clarity on Spain's inflation trajectory and its implications on the economy and consumers. Related Sources: • Source 1 • Source 2