Spain’s annual inflation rate climbed to 3% in February compared to the same period last year, marking the highest increase since June, according to a preliminary estimate by the Spanish statistics agency NSI.
If confirmed, this represents a slight rise from January’s 2.9% inflation rate. The EU-harmonized inflation for February stood at 2.9%, exceeding market expectations.
The primary driver of the increase was a rise in electricity prices, which reversed the decline recorded in February last year. However, slower price growth in fuels and oils for personal vehicles helped slightly offset the impact of soaring energy costs.
Core inflation, which excludes food and energy prices, slowed to 2.1%, the lowest since December 2021, and down from January’s 2.4%. On a monthly basis, prices rose by 0.4%, surpassing market estimates and following a 0.2% rise in January. This aligns with the EU-harmonized monthly data.
Spain’s inflation rate remains slightly higher than the eurozone average, which was 2.5% in January 2025, up from 2.4% in December 2024. However, the overall trend across the eurozone mirrors Spain’s, with inflation rising for the fourth consecutive month.
Despite European Central Bank (ECB) President Christine Lagarde’s recent statement that “most measures suggest that inflation is converging towards our target on a sustained basis,” concerns are growing that if core inflation remains above the ECB’s 2% target, the bank may be forced to delay interest rate cuts aimed at stimulating the European economy.
