Producer prices in Spain surged 6.6% year-on-year in February 2025, marking the sharpest increase since February 2023 and accelerating from a 2.6% rise in January.
Spain producer inflation at two-year high
The surge was primarily driven by energy prices, which soared 22.2% (up from 8.4% in January), largely due to higher costs in the production, transportation, and distribution of electricity and gas, as well as the pipeline distribution of gaseous fuels. This significant increase reflects both rising global energy demand and supply constraints that have pressured prices upward.
Excluding energy, industrial prices remained flat after a 0.2% decline in January, indicating that underlying inflationary pressures in the broader manufacturing sector remain subdued. However, prices for durable goods edged up slightly (0.7% vs. 0.6% in January), driven by stronger demand in key consumer segments, while intermediate goods saw a more notable increase (0.6% vs. 0.1%), particularly in the production of animal feed, suggesting cost pressures in the agricultural supply chain.
Price growth for equipment goods slows slightly
Conversely, price growth for equipment goods slowed slightly (1.4% vs. 1.5%), reflecting more stable cost dynamics in capital-intensive industries. Meanwhile, prices for non-durable goods continued to decline by 1.4%, unchanged from January, as weak consumer demand and lower input costs in food and household essentials weighed on pricing.
On a monthly basis, producer prices in Spain rose 1.2%, primarily fueled by a 5.7% jump in the production, transmission, and distribution of electric power, reinforcing the dominant role of the energy sector in driving overall inflation. These trends suggest that while energy remains a key inflationary force, broader industrial price movements remain relatively contained.
