Wednesday, 15 October 2025, 14:04
Inflation is once again on the rise in Spain, reaching its highest level in eight months. The consumer price index (CPI) rose to 3% in September, according to data confirmed by the national institute of statistics (INE). The INE corrected upwards by 0.1% its estimate from a few days ago. Electricity prices rose slightly, but what most pushed up the September figure was the rise in fuel and food prices. Inflation is picking up again after stabilising in July and August.
Spain is moving away from the safe environment of 2% recommended by the European Central Bank (ECB). The disinflation process could be hampered by the rise in the cost of imports to the US and adjustments in supply chains, especially if trade fragmentation continues to escalate.
This upturn pushes up the pension increase, which will be decided by average inflation from November 2024 to November 2025.
Moreover, core inflation, which does not include energy or fresh food, was also corrected upwards to 2.4%, the same rate as in August. This is the measure taken as a reference by the ECB, as it is the most stable over time.
Food inflation stabilised at 2.4%, but with significant rises in basic products. The good news is that olive oil prices dropped by 34% in September compared to the same month last year, after months of double-digit increases.
Some of the foods that saw the biggest price increases in September were, once again, coffee and chocolate, which rose by 20% and 16%, respectively, compared to their prices a year ago. According to the detailed INE data, eggs also shot up 18% in September and beef 17%. Other items that increased above the average are cocoa (8.5%), lamb (9%), legumes (8%), butter (7.5%), cheese (5.6%), milk (7%) and breakfast cereals (4.4%).
The only foods that became cheaper compared to September last year were yogurt (-3%), sugar (-17.4%) and olive oil (-34%). However, it should be noted that these items had been recording record-high rates for months and these drops may be due to a ‘stair-step’ effect.