Spain’s annual inflation rate for 2024 stood at 2.8%, according to final data from the Spanish National Statistics Institute (INE). The rise in fuel prices and increased costs in the transport and leisure sectors were the main drivers of inflation during the year.
INE confirmed that prices rose by 2.8% in 2024, with significant contributions from the transport sector (+1.6%) and leisure and culture (+1.2%). Despite these increases, inflation was lower than the 3.6% recorded in 2023 and marked a significant drop from 2022’s 8.4%, the highest rate since 1986.
The annual average Consumer Price Index (CPI) for 2024 was 2.8%, seven-tenths lower than the previous year and more than five points below the inflation peak of 2022.
Notable price changes
The food category experienced mixed trends in 2024. Chocolate saw the steepest price rise, increasing by 23.9%. Conversely, sugar and olive oil prices dropped significantly, falling by 13.9% and 12.3%, respectively.
December inflation in context
December’s inflation rate of 2.8% was lower than the 3.1% recorded at the end of 2023 and significantly below the 5.7% and 6.5% recorded in December 2022 and 2021, respectively.
Core inflation, which excludes volatile items like unprocessed food and energy, rose by two-tenths in December to 2.6%. This figure remained below the headline inflation rate, reflecting relatively stable prices in non-energy and non-food categories.
Rising inflation in late 2024
December marked the third consecutive monthly increase in inflation, with CPI reaching its highest level since July 2024. The rise was driven primarily by higher fuel costs and, to a lesser extent, increased prices for leisure and culture, particularly holiday packages.
Sectors driving inflation
- Transportation: Rising fuel and lubricant costs significantly impacted the transport sector’s inflation rate in December.
- Leisure and culture: Prices in this sector climbed due to more expensive holiday packages, reflecting a surge in travel demand.
Government response
The Ministry of Economy, Trade, and Business attributed the CPI increase to rising fuel prices but highlighted the overall decline in inflation compared to previous years. The ministry also noted that food inflation stabilised in the final months of 2024, closing the year at 1.8%, one percentage point below the general inflation rate.
Economic outlook
While inflation has eased compared to the highs of 2022 and 2023, rising costs in key sectors such as transport and leisure highlight the ongoing challenges for households and businesses. The government continues to monitor energy prices and broader economic conditions, as inflationary pressures in late 2024 suggest a potential impact on consumer spending and economic growth in 2025.
Spain’s inflation trajectory reflects a complex interplay of global energy prices, domestic market dynamics, and evolving consumer behaviour, making the country’s economic management a critical focus in the coming year.
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