In February, data from the Organisation for Economic Co-operation and Development shows that Spain led a global shift in energy costs, with prices dropping by 8.9 percent over the preceding twelve months. This notable decline came amid broader movements in the European energy landscape, where Spain stood out as one of the few markets to experience a clear downward trend during that period. The downward momentum in energy prices did not occur in isolation; it formed part of a wider pattern across several OECD members and other economies, illustrating how energy affordability can swing when wholesale markets, policy measures, and domestic consumption cycles interact in complex ways.
Between February 2022 and February of the current year, energy prices continued to ease in a number of countries according to OECD findings released in midyear. Belgium, with a 7.9 percent decrease, led the group of nations showing substantial declines. Costa Rica followed with a 5.6 percent drop, while Greece saw energy costs ease by 5.2 percent. Luxembourg and the Netherlands also registered reductions at 2 percent and 1.1 percent respectively, with Japan showing a smaller decline of 0.7 percent. Canada completed the list of notable movements, recording a slight decrease as well. Taken together, these shifts reflect how energy markets can become more favorable in some regions even as other economies face different price pressures.
On the opposite end of the spectrum, several countries experienced sharp increases in energy costs over the same twelve-month window. England recorded a surge of 48.3 percent, Latvia saw prices climb by 46.4 percent, and Turkey experienced a rise of 42.2 percent. These movements underscore the sensitivity of energy expenses to a mix of domestic policy choices, supply reliability, and currency dynamics, all of which can amplify price volatility for households and businesses alike.
February also saw the OECD inflation rate hold steady at 8.8 percent, just slightly below January’s level. The modest easing mainly reflected the retreat of energy inflation, which slowed from 16.4 percent year over year to 11.9 percent. Food inflation also cooled, though only modestly, moving from 15.2 percent to 14.9 percent. These shifts illustrate how energy costs can influence overall price growth and, in turn, affect consumer purchasing power across different sectors of the economy.
Within the inflation rankings, several countries reported notable improvements in February. Costa Rica reduced its inflation rate from 7.7 percent in January to 5.6 percent in February, while Turkey edged down from 57.7 percent to 55.2 percent in the same period. These movements highlight the heterogeneity of inflation pressures around the world, often reflecting country-specific conditions such as monetary policy responses, energy exposure, and food price dynamics.
Spain, meanwhile, registered a 6 percent inflation rate in February, placing it near the middle of OECD members for that month. The rate in Spain rose slightly from 5.9 percent in January, a change that was mainly driven by an acceleration in food prices, which advanced from 15.4 percent in January to 16.6 percent. This uptick in food inflation contributed to the overall rise, even as other energy-related and non-energy factors moderated. The Spanish inflation profile during this period illustrates how price movements in specific sectors can influence headline figures even when energy costs are easing.
Core inflation in February stood at 5.2 percent in Spain, marking a modest divergence from broader regional trends. Spain’s core rate remained a touch below the OECD average of 7.3 percent and beneath the euro area figure of 5.6 percent, signaling that non-energy, non-food price pressures were comparatively contained in the country during the month. This distinction between core and overall inflation helps explain how households weigh the costs of daily goods and services against energy-driven price shifts.