Spain's annual inflation rate increased for the fourth consecutive month, rising to 3% in January 2025, the highest level since June 2024, and surpassing market expectations of 2.9%, according to preliminary estimates.
The ongoing inflationary pressure was primarily driven by higher fuel prices, a significant contrast to the decline in fuel prices seen in January 2024. Additionally, although to a lesser extent, rising electricity costs also contributed, increasing more than they did during the same period last year. In contrast, the leisure and culture sector had a weaker impact on inflation, with prices falling more sharply than in January 2024.
Core inflation eases
The core inflation rate, which excludes volatile items like food and energy, eased to 2.4%, down from a four-month high of 2.6% in December. On a monthly basis, the Consumer Price Index (CPI) rose by 0.2%, following a 0.5% increase in December, slightly exceeding market expectations of no change. The EU-harmonized CPI showed a 2.9% year-on-year increase, above the forecasted 2.8%, and declined by 0.1% month-on-month, compared to the expected 0.3% drop.
