Spain inflation hits 4.3% as fuel prices climb in August
Spain’s inflation rate reaches 4.3% in August, driven by higher fuel prices. The National Statistics Institute released its preliminary reading on Friday, showing the highest annual rate since February 2023. Inflation has now risen for two months running and is above 4% for the first time since April 2023.
Fuel and lubricants for private vehicles pushed prices higher after falling in August 2025. Food and non-alcoholic drinks also added to the increase, although to a lesser extent, because their prices fell less than they did a year earlier.
The Ministry of Economy, Trade and Enterprise links the fuel rise chiefly to the continuing energy shock caused by the war in Iran. Final August figures, including a fuller breakdown of the shopping basket, are due on 15 September.
Underlying price growth eases
Core inflation — which leaves out unprocessed food and energy products — fell by one tenth to 2.9% in August. The ministry said the sharp rise in the overall rate had not spread to this underlying measure.
Prices rose 0.7% from July, the biggest monthly increase since March and the seventh consecutive monthly rise. The harmonised consumer price index, used for comparisons across Europe, rose to 4.5% year on year and increased 0.6% during the month.
Bigger diesel tax cut from September
Diesel tax relief will rise to 20 cents per litre on 1 September, instead of the 5 cents initially planned. The change follows a 15.7% year-on-year rise in diesel prices in July, above the 15% trigger set in the government’s response plan for the conflict in the Middle East.
Petrol remains on a 5-cent-per-litre reduction in September. Its price was 7.3% higher in July than a year earlier, below the threshold for the larger relief.
Source: Europa Press / Mallorca.com