Spain’s European Union-harmonised 12-month inflation rate declined to 2.4% in January, down from 3.0% in the period through December, according to final data released Friday by the National Statistics Institute (INE). The confirmed figure came in slightly below both the 2.5% flash estimate issued two weeks earlier and the average analyst projection compiled by Reuters. The INE also reported that Spain’s national consumer price index rose 2.3% year-on-year in January, easing from 2.9% in December and marginally under the preliminary 2.4% reading. Core inflation, which excludes volatile fresh food and energy prices, held steady at 2.6% over the same 12-month period. In a statement, Spain’s Economy Ministry attributed the notable moderation primarily to lower energy costs and characterized the decline as the largest year-on-year drop in inflation since March 2025. The ministry further indicated that household purchasing power improved by 1.5% during 2025, citing wage increases that outpaced overall price growth.
Core Inflation Stability, Energy Price Impact, and Implications for Spain’s 2026 Economic Outlook
The January data underscores a significant cooling in headline inflation while core price pressures remain stable. The unchanged 2.6% core rate suggests that underlying inflationary dynamics have not accelerated, even as energy prices exerted downward pressure on the overall index. For policymakers and market observers across the European Union and the Middle East, Spain’s updated inflation figures offer a clearer signal regarding price stability within one of the euro area’s largest economies. The downward revision from the flash estimate also reinforces confidence in the moderation trend, particularly as energy markets continue to influence broader consumer price developments. By highlighting the improvement in real household income, the Economy Ministry positioned the latest inflation reading within the broader context of wage growth and domestic demand resilience. Together, the finalized figures present a comprehensive snapshot of Spain’s price trajectory at the start of the year, grounded in official statistical releases and ministry statements.