Prices keep rising in Spain at a pace faster than in recent months. An advance published by the National Institute of Statistics (INE) shows a 2.4% year-on-year increase in November, extending a trend that pushes the October rate higher by six-tenths of a point. This signals a renewed inflationary pulse after a period of relief for consumers.
Put differently, aside from a few exceptions, the cost of living and everyday spending in Spain had climbed above 2% for three straight years, a rate above what the European Central Bank regards as reasonable. This year, the peak reached 3.6% in May, when inflation began to ease. It didnt fall meaningfullyt—prices have been higher for 45 consecutive months—but the path had been easing until October reversed that momentum.
The price uptick in November was linked to higher fuel costs and the return of VAT on foods; the gap between September and October was 0.3 percentage points, while October to November widened by 0.6 points. In addition, the rate now surpasses the 2% threshold.
The statistical body attributes the renewed rise mainly to electricity prices and fuels, which are up this year after dropping last year. Deeper analysis will come when INE confirms the data and releases the full breakdown mid-month. What the early October breakdown showed is notable increases in restaurants and hotels, household utilities, rents, alcohol and tobacco, and certain foods such as chocolate, lamb and mutton, and potatoes.
In fact, when volatile components like energy and unprocessed foods are stripped out, the CPI edges downward slightly. Core inflation sits at 2.4%, which in this case means a tenth lower than October and matching September, the lowest reading in several years.
Economists view this as a positive signal for policy, noting that the twelve-month inflation average has also eased: currently 2.8%, down from 3.8% at the same point last year. This decline is cited as evidence that policy measures are supporting growth while continuing to bring inflation down gradually.
For retirees, the inflation rate matters because it is used as the reference for adjusting contributory pensions in the coming year. The 2.8% increase will apply starting January 1, 2025, equating to about 40 euros more per month for pensioners.