FX.co ★ Spain’s Producer Prices Swing Back to Inflation in March, Ending Year-Long Slump

Spain’s producer price index (PPI) staged a sharp turnaround in March 2026, rising 3.4% year-over-year after a steep 7.0% annual decline in February 2026. The data, updated on 24 April 2026, signal a decisive shift from deflationary pressure at the factory gate toward renewed cost inflation in the country’s industrial sector.

The PPI measures the average change over time in the selling prices received by domestic producers for their output, and the March figures are calculated against the same month a year earlier. While February’s reading showed that producer prices were still significantly lower than in February of the previous year, March’s positive print indicates that prices have now moved above their level of March a year ago.

This move from negative to positive territory in just one month suggests a rapid change in cost dynamics for Spanish producers. It may have implications for corporate margins and, with a lag, for consumer inflation, as higher producer prices can eventually filter through to retail prices depending on competitive and demand conditions. Investors and policymakers will be watching subsequent releases closely to see whether March marks the start of a sustained producer price uptrend or a one-off rebound.