Spain's August CPI accelerated to 4.3% y/y, beating expectations of 4.2%

• The prior month's CPI stood at +3.6%.
• Harmonised CPI came in at +4.5% y/y, slightly below the expected +4.6%.
• That compared with a prior reading of +3.9%.
• Core annual inflation was estimated at +2.9%, down from +3.0% in July.

Spain's yearly inflation rate climbed steeply in August, driven by higher fuel expenses that sent the headline measure to a more-than-one-year peak. The fuel and lubricants category was the primary driver, as prices there rose versus the declines seen in August 2025. That comparison with last year's subdued energy prices created a substantial upward base effect, with fuel costs accounting for the biggest share of the headline inflation increase.

Food and non-alcoholic drinks also contributed to the upward pressure on prices. While prices in this segment fell over the month, the drop was less pronounced than in the corresponding period a year earlier, leading to a larger year-on-year contribution to the overall CPI.

Underlying inflationary pressures eased a bit despite the sharp rise in the headline figure. Core inflation is estimated to have slowed to 2.9% from 3.0% in July.

The gap between the headline and core readings was mainly due to energy-related influences, not a widespread pickup in domestic price pressures.