FX.co ★ Spain Inflation Holds at 5-Month High

Spain's annual inflation rate held steady at a five-month peak of 2.7% in August 2025, mirroring July's figures and just shy of the anticipated 2.8%. This inflationary steadiness resulted from contrasting elements: fuel prices exerted an upward force by not falling as drastically as they did last August, whereas the costs of food, beverages, and electricity applied downward pressure, with these prices either dropping more significantly or increasing at a slower pace compared to a year earlier. Concurrently, core inflation, which omits volatile factors such as food and energy, edged up to a four-month high of 2.4% in August, a slight increase from 2.3% in July. When viewed through the EU-harmonised lens, the Consumer Price Index (CPI) climbed by 2.7% year-on-year, aligning with projections. On a month-to-month basis, consumer prices remained unchanged, following a 0.1% reduction in July, contrary to market predictions of a 0.1% increase.