Spain’s annual inflation rate reached 3% in February 2025, according to preliminary data from the National Institute of Statistics (INE). This marks a small increase from the 2.9% recorded in January and continues the upward trend that began in October 2024.

Electricity Prices Drive Inflation Up

The main factor behind the rise in inflation in Spain is the increase in electricity prices. In contrast, fuel prices have risen more slowly than in February 2024, helping to ease overall inflation pressure. The higher electricity costs are partly due to the return of the standard 21% VAT rate on January 1, following months of a reduced 10% rate.

Core Inflation Drops to Its Lowest Level Since 2021

Core inflation, which excludes volatile items like energy and unprocessed food, fell by 0.3 percentage points to 2.1%. This is the lowest level in over three years, indicating a more stable pricing trend in essential goods and services.

Monthly Inflation and Consumer Prices

Consumer prices rose by 0.4% in February compared to January. While electricity costs have increased, fuel prices have helped to offset some of the inflationary pressure. Recent EU data shows that the average price of petrol and diesel remains around €1.57 and €1.50 per liter, respectively.

European Inflation Trends and Economic Impact

Spain‘s inflation rate remains higher than other major European economies, including Germany (2.8%), France (1.8%), and Italy (1.7%). The European Commission is urging member states to lower energy taxes to help reduce the impact on households and businesses.

Final inflation data for February 2025 will be released in mid-March, providing a clearer picture of price trends in key sectors like food and energy.

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