Spain Inflation Rate Unexpectedly Accelerates

Spain’s annual inflation rate inched up to 2.2% in June 2025 from a seven-month low of 2% in May and against market expectations it would remain steady at 2%, according to preliminary estimates. It marks the first increase after three consecutive months of deceleration, largely attributed to a rebound in fuel prices, contrasting with the decline observed in June 2024. Food and non-alcoholic beverages also played a role, with prices increasing more than in the same month a year earlier. The core rate, excluding volatile items like food and energy, stood at 2.2%, unchanged from the prior month. Compared to the previous month, consumer prices rose 0.6%, after a 0.1% increase in May and above market forecasts of a 0.4% rise. Considering the EU-harmonised, the CPI rose 2.2% on the year, topping market forecasts of 2%, and increased 0.6% on the month, in line with market estimates.