Spain faced a modest easing in inflation during August, according to the latest data from the National Institute of Statistics (INE). The year-over-year rise in the consumer price index (CPI) ticked down slightly, from 10.5% in July to 10.4% in August, a move that kept the rate just above the 10.4% figure INE released on December 30. The August data show that electricity, food, and tourism prices continued to exert upward pressure on the overall index, while August also marked a historic high in the eurozone’s inflation landscape, with Spain ranking ninth among 19 member states. Detailed INE figures indicate that food prices surged by 13.8 percent on an annual basis in August.
Food and non-alcoholic beverages registered a steep 13.8 percent annual rise in January 1994 terms, representing a pace that was three-tenths higher than in the previous month and the fastest rate observed since the series began. Within this broad category, several subcomponents contributed to the acceleration: milk prices climbed, cheese and eggs increased, while meat prices remained relatively stable compared with the previous year. Bread and cereals, too, rose beyond last year’s August levels, underscoring persistent food-price pressures across multiple staples.
The INE data also show that annual core inflation advanced by three-tenths of a percentage point, reaching 6.4 percent in August. This measure strips out more volatile items to reveal underlying price dynamics and suggests that inflation, while easing in headline terms, still held firm in the underlying price environment.
Meanwhile, the Harmonized Consumer Price Index (IPCA) reported an annual rate of 10.5 percent, a figure two-tenths below the prior month. This quarterly snapshot aligns with an observed trend of a slower pace in price increases across many European economies, even as some sectors continue to experience notable price growth.
Officials from the Ministry of Economy noted a slowdown in inflation in August, framing it as the start of a longer downward trajectory anticipated to extend into the coming months. They attributed the peak inflation to two key shocks: first, the onset of the war in Ukraine in March, and then the reduction of gas supplies from Russia in June. Officials stressed that the observed deceleration in price increases coincided with the easing of natural-gas pressure and with the measures implemented by the government to mitigate inflation, helping to cushion households and support economic activity. Government data and analyses suggest that while inflation may remain elevated, the trend points toward a more moderate inflation path as energy prices stabilize and supply chains adjust, reinforcing expectations of a continued, gradual moderation in the months ahead.