According to the latest Consumer Price Index data, inflation rose by three tenths in August, bringing the rate to 2.6 percent. The National Institute of Statistics confirms the leading indicator that had been forecast earlier in the month, reinforcing the view that price growth remains modest but persistent. When comparing August with July, the CPI shows an increase of 0.5 percent, indicating a continued month over month rise in consumer costs.
The spike in inflation during August is largely driven by higher fuel prices, which climbed by five percent from July. This surge in energy costs contributed to inflation rising for a second consecutive month, after the annual pace dipped to a low of 1.9 percent in June. On a year-over-year basis, fuel prices in August are still lower than their level in 2022 by about 3.8 percent, helping to moderate some of the overall price pressures.
Olive oil also played a notable role in the inflation story, recording a monthly increase of 8.7 percent. The price per liter thus stands approximately 52.5 percent higher than in the previous year, underscoring how food staples have continued to influence the pricing landscape despite broader inflation easing in other sectors.
Electricity costs rose by 0.6 percent compared with July, though the August increase was smaller than the rise seen in August of the previous year. This dynamic has contributed to a widening annual decline in electricity prices, now standing at around 49.6 percent. The energy sector remains a key source of volatility in consumer prices, shaping the trajectory of overall inflation.
Food and non-alcoholic beverages, a category frequently sensitive to weather, harvests, and input costs, posted a smaller monthly gain of 0.2 percent. This subgroup still shows a robust annual inflation of around 10.5 percent, which is a decrease from the 10.8 percent registered in July and well below the 16.6 percent peak observed in February. The moderation in this area helps anchor overall inflation even as energy costs drive short-term fluctuations.
When volatile components such as energy and unprocessed food are stripped out, the core inflation measure sits at 6.1 percent, reflecting a slight easing of almost one-tenth of a percentage point from July. This cooling is a meaningful signal that underlying price pressures may be cooling alongside energy-driven surges, though the pace remains elevated compared with some historical periods.
Forecasts from labor market analysts and government projections for coming months suggest that the modest inflation uptick observed in August may persist at a rate just over three percent on average through the remainder of the year. In this context, the government highlights Spain as an economy showing resilient growth paired with comparatively low inflation within the eurozone, a combination that supports the competitiveness of domestic firms and strengthens wage growth dynamics. The ministry notes that these conditions help sustain purchasing power while keeping inflation in check across key sectors. The national statistical agency also provides harmonized perspectives, with comparable indices indicating a CPI trajectory that aligns with broader European trends while remaining distinctly shaped by national factors. This alignment underscores the economy’s capacity to absorb shocks in energy and food without derailing overall price stability. INE provides ongoing assessment of price momentum, contributing to a nuanced understanding of how domestic demand, production costs, and external energy prices interact to shape the inflation narrative in the near term.