The drop in inflation at the start of the year came as unexpected news for millions of Spanish families. The January decline in prices immediately impacted household spending, sparking animated discussions in shops and markets. For many, this means a long-awaited respite after months of rising costs, especially against the backdrop of economic instability in Europe.
The inflation rate in January 2026 fell to 2.4%. This is the lowest figure in the past seven months. In December, inflation stood at 2.9%, and such a sharp decrease was the most significant monthly change since March of last year. For comparison, the last time a similar level was recorded was in June, when the consumer price index reached 2.3%.
Energy and prices
The main factor behind such a significant slowdown in inflation was the dynamics of the energy market. In January, the wholesale price of electricity fell to 73.9 euros per megawatt-hour, a quarter less than a year ago. This drop in energy prices immediately influenced the final inflation figures, allowing many families to feel relief in their monthly bills.
However, the picture is not so clear-cut. Despite the overall decline, inflation remains high in certain categories of goods and services. This is especially true for food products and some types of services, where price growth shows no signs of slowing. Experts point out that energy is just one piece of the puzzle, and it is too early to relax.
Hidden threats
Inflation excluding energy and unprocessed food prices—so-called core inflation—remained at 2.6%. This figure has held steady for three consecutive months. For economists, this is a worrying sign: despite falling energy prices, internal inflationary pressures continue to affect the market.
Food prices are causing particular concern. Chocolate, coffee, eggs, and beef continue to rise in price, despite the overall downward trend in inflation. As a result, Spain still outpaces the eurozone average, raising questions among analysts and ordinary citizens alike.
Forecasts and expectations
Economists are making cautious forecasts for 2026. The average annual inflation rate is expected to reach 2.4%, three tenths lower than in 2025. A new low is possible in February, though inflation may accelerate again in the spring before stabilizing toward the end of the year.
For Spanish workers, this is a chance to regain some lost purchasing power. The country’s economic situation remains relatively stable, allowing hopes for further wage growth. Nevertheless, uncertainty persists: much will depend on the dynamics of food and service prices, as well as external factors influencing the national economy.
