Spain’s Consumer Price Index (CPI) has moderated to 2.2% in August, marking its lowest level in over a year, primarily due to a decrease in fuel prices and, to a lesser extent, a drop in the cost of food and non-alcoholic beverages.
This represents a significant reduction of six-tenths of a percentage point from July’s figure of 2.8%, according to preliminary data released by the National Statistics Institute (INE) on Thursday. The core inflation rate, which excludes fresh food, energy, and fuel, also eased slightly, dropping from 2.8% to 2.7%—its lowest since January 2022. These figures will be confirmed on September 12.
This marks the third consecutive month of declining inflation, following increases in March, April, and May when the CPI peaked at 3.6%. The August figure also represents the lowest year-on-year inflation rate since 2020, when it stood at 2.2%, compared to 3.3% in 2021, a peak of 10.5% in 2022, and 2.6% in 2023.
Harmonised consumer price index also falls
In addition to the CPI, the Harmonised Consumer Price Index (HICP), which reflects consumer spending in Spain by both residents and non-residents, also saw a reduction. The annual rate for August is estimated at 2.4%, down five-tenths of a percentage point from July.
Government praises economic strategy
The Spanish government has welcomed the latest inflation data, with both Prime Minister Pedro Sánchez and Minister of Economy and Business, Carlos Cuerpo, offering positive assessments.
“These encouraging figures show that the government’s economic policies are working effectively, as they balance one of the highest growth rates in the Eurozone with this steady moderation in prices and the recovery of household purchasing power,” said Cuerpo. He added that the August data “indicates we are continuing the process of price moderation towards the European Central Bank’s 2% target.”