Producer prices in Spain rose 2.6% year-on-year in January 2025, marking the highest annual increase since February 2023 and accelerating from the 2.3% rise recorded in December.
Spain producer inflation highest in two years
The uptick was primarily driven by higher energy costs, which climbed 8.6% compared to 7.6% in the prior month, reflecting continued pressures from global fuel markets. Additionally, prices for durable consumer goods edged higher (0.6% vs. 0.5%), and intermediate goods rebounded into positive territory (0.2% vs. -0.4%), signaling a recovery in manufacturing input costs.
Meanwhile, the data pointed to some areas of price relief. Inflation eased for equipment goods (1.5% vs. 1.7%) and fell further for non-durable consumer goods (-1.5% vs. -0.9%), suggesting weaker price pressures for essential consumer products. This decline in non-durable goods pricing may be linked to cooling demand and improved supply chain conditions.
Month-over-month figures
On a monthly basis, producer prices rose 0.4% in January, following a sharper 0.9% increase in December, indicating a moderation in short-term price pressures. However, the continued rise in energy costs and the rebound in intermediate goods suggest that inflationary pressures in the industrial sector remain persistent.
Looking ahead, market participants will closely monitor energy price trends, potential shifts in demand for industrial goods, and the broader economic outlook in the Eurozone, as these factors will influence Spain’s producer price trajectory in the coming months. The data will also be a key consideration for the European Central Bank as it assesses the inflationary environment while planning future monetary policy decisions.
