Inflation in Spain picked up again in September, reaching 3% year-on-year, according to the National Statistics Institute (INE). This marks the highest level since February 2025, and three-tenths higher than the August figure of 2.7%. The increase has sparked fresh concern about the rising cost of living and whether prices will ease again before the end of the year.

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Inflation Data: What the Numbers Show

The INE’s final data confirms that inflation in Spain hit 3%, slightly above the early estimate released in late September. The core inflation rate, which excludes food and energy, remained steady at 2.4%, showing that underlying price pressures are still persistent.

On a monthly basis, consumer prices actually fell by 0.4%, largely due to seasonal factors such as lower travel and holiday costs at the end of summer. Despite that drop, overall prices remain higher than a year ago, particularly in key areas like housing, transport, and food.

Why Prices Are Rising Again

Two of the biggest contributors to the September rise were transport and housing.

Fuel prices didn’t fall as much as they did last year, pushing the annual transport inflation rate up to 2.2%. Meanwhile, the housing and utilities category saw a sharp increase of 7.1%, as electricity prices also declined less than expected compared with 2024.

Food prices also inched higher. After two months of decline, food and non-alcoholic beverages rose from 2.3% to 2.4%, with sharp increases in everyday items like coffee (+19.9%), eggs (+17.5%), beef (+16.5%) and chocolate (+15.6%). One of the few bright spots was olive oil, which has dropped over 40% in the past year.

Regional Differences Across Spain

Inflation hasn’t hit all regions equally. Ceuta, Madrid and Valencia recorded the highest rates, at 3.9%, 3.5% and 3.4% respectively. Regions with the lowest rates include the Canary Islands (2.2%), Murcia (2.4%), and Cataluña (2.6%).

These differences reflect local variations in costs, such as electricity supply, housing, and transport, as well as how much households spend on certain goods and services.

Índice de #Precios de Consumo (IPC). Septiembre 2025 @es_INE
La tasa de variación anual del #IPC del mes de septiembre se situó en el 3,0%, tres décimas por encima de la registrada en agosto
Nota de prensa
👇https://t.co/tRq6W111k2
Resultados ➡️ https://t.co/fAoBlswGyU#INE pic.twitter.com/DHbP76vEzI

— INE España (@es_INE) October 15, 2025

Comparing Spain to the Eurozone

Spain’s inflation rate now sits above the eurozone average, which was around 2.2% in September. That puts the country roughly eight-tenths of a point higher than its European peers.

This gap highlights how Spain’s strong economic growth, driven by tourism and domestic demand, is also keeping prices elevated. The European Central Bank (ECB) has so far held interest rates steady, describing them as “appropriate” for current conditions, but that leaves Spain to manage its own cost pressures through national policies.

The Main Factors Behind the Rise

Economists point to several key reasons for the inflation rebound:

• Base effects – prices were unusually low in September 2024, especially for fuel, making this year’s comparison look worse.
• Energy prices – electricity and gas are no longer falling sharply, reducing their downward pull on overall inflation.
• Tourism and services – strong demand for travel, hospitality, and housing keeps prices high in the service sector.
• Global pressures – while oil prices have dropped recently, ongoing geopolitical tensions and supply issues can still add volatility.

How Inflation Affects Everyday Life

For many families, this rise means the weekly shop, utility bills, and fuel costs are still eating into household budgets. Even small price jumps in essentials like eggs or coffee add up quickly when wages are not rising at the same pace.

Businesses are also feeling the pressure. Higher energy and transport costs can squeeze profit margins, while uncertainty makes it harder to plan ahead. Wage demands are likely to increase as workers try to keep up with prices, which could, in turn, feed into future inflation.

What to Expect in the Coming Months

Most economists believe September’s 3% rate could be the year’s peak, with inflation expected to gradually slow towards 2.6% or 2.7% by December. The Bank of Spain projects an average of 2.1% for 2025, slightly above the European Central Bank’s target of 2%.

The government and analysts agree that the coming months will be crucial. If energy prices remain stable and no new global shocks occur, inflation should continue to ease. However, renewed pressure from wages, oil markets, or international conflicts could change that outlook quickly.

A Balancing Act for Spain’s Economy

Spain remains one of the fastest-growing economies in Europe, with strong employment and declining debt levels. But inflation has become the most difficult variable to control. While the country’s growth is good news, it also fuels domestic demand, and with it, higher prices.

For now, the outlook remains cautiously optimistic. The worst may be behind, but controlling inflation will require a careful balance between supporting growth and keeping prices in check.

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