The annual inflation rate in Spain dropped to 2.3% in March 2025, marking the lowest level in five months, down from 3% in February and falling below forecasts of 2.7%, according to preliminary estimates.
Spain inflation rate falls more than expected
The most significant downward contribution to the inflation rate came from electricity prices, which decreased in March this year, reversing the increase observed in March 2024. This shift in electricity prices played a crucial role in driving the overall inflation decline. Additionally, although contributing to a lesser extent, lower prices for fuel and lubricants for personal vehicles helped to ease inflation, as these prices had risen in the same month last year.
Furthermore, price increases in leisure and cultural activities were more moderate compared to March of the previous year, contributing to the overall slowdown in inflation. The core inflation rate, which excludes volatile items such as food and energy, also eased to 2% in March, down from 2.2% in February. This suggests that underlying price pressures in the economy are showing signs of easing.
Monthly figures
On a monthly basis, the Consumer Price Index (CPI) edged up by 0.1%, reflecting modest price changes across a range of goods and services. When considering the EU-harmonised measure, the CPI rose by 2.2% year-on-year, compared to 2.9% in the previous period, and increased by 0.7% month-over-month, up from 0.4% in February. This indicates that, while inflation has moderated, there are still areas where prices are climbing, though at a slower pace than in the recent past. Overall, the inflation data for March suggests a continued cooling of price pressures in Spain, driven by specific sectors such as energy and transportation.
