September brought a notable shift in industrial price dynamics. The National Institute of Statistics reported a 35.6% annual rise, driven largely by lower energy costs and a softer economy compared with the prior month. This marks a sizable deceleration from August, when the annual increase was higher, yet the energy and manufacturing sectors still contributed to a broadly positive trend in the price chain for the nineteenth consecutive month.
Analysts point to a moderation in the year over year rate, with the September figure about 7.5 percentage points below August’s pace. The overall industrial price index remains in a growth trajectory, but at a slower clip than in the summer months.
The moderation in the yearly rate was driven mainly by energy, which saw a marked decline in its annual variation due to lower electricity generation costs and reduced refining activity. As a result, energy contributed a substantial drop in the annual rate, narrowing the gap created by earlier price pressures. In contrast, chemical products and key iron goods showed softer growth compared with September of the previous year, helping reduce the overall rate. Intermediate goods also contributed to the easing, slipping modestly year over year.
Non-durable goods prices rose in September, advancing by about half a point to 13.1% compared with the same month last year. The increase reflects higher costs in meat processing and preservation, as well as the broader production of meat products. These factors kept certain consumer goods prices under pressure, even as other sectors cooled.
Excluding energy, industrial prices rose 14% year on year in September, a four-tenths decline from August and well below the overall rate by 21.5 percentage points. This separation between energy and non-energy components highlights how energy markets continued to drive much of the volatility in the broader index.
Among sectors, electricity and gas showed the largest year-on-year increases since September 2021, followed by strong gains in coking plants and oil refining. The paper industry, chemical industry, and food industry also posted notable gains, illustrating a broad base of price growth across multiple segments of the industrial economy.
Prices Stagnant on a Monthly Basis
On a month-to-month basis, industrial prices were unchanged from August to September, ending an 18-month streak of monthly increases. The stabilization comes as energy prices fell by 0.3%, while intermediate goods dipped by 0.4%. Non-durable goods rose by 0.8%, illustrating a mixed balance of dynamics across the product spectrum.
Inflation Appears Moderate Across Regions
Regional data show a broad slowdown in the annual rate of the industrial price index across autonomous communities for September. Compared with August, several regions registered sizable declines, with the Canary Islands, Balearic Islands, and Asturias experiencing the sharpest drops. Others saw smaller but still meaningful reductions in annual growth rates.
Some regions reported smaller declines, notably Valencia, Catalonia, and Extremadura, where the decreases were modest in comparison. By the end of September, all communities still posted positive industrial price rates, though the regional spread remained wide.
The highest annual rates were recorded in the Balearic Islands, followed by Murcia and Andalusia, reflecting regional differences in energy costs, manufacturing activity, and local demand. Conversely, La Rioja, Navarra, and Cantabria showed more moderate rates, underscoring how geography and sector mix influence price behavior across the country. The regional picture confirms a mosaic where energy-intensive areas often shoulder higher inflation in the industrial space, while other regions run cooler but still retain upward momentum compared with a year earlier.
Citations: INE national statistics office for September industrial prices; regional breakdowns reflect autonomous community data.