Spanish inflation rose to 4.3 percent in August, its highest level since February 2023, as fuel and energy costs climbed by 21.3 percent. It was the steepest increase in more than a year.
Several factors drove the jump. The ongoing war in Iran unsettled global energy markets, while the Spanish government’s recent cuts to fuel subsidies left drivers paying more at the pump. The National Statistics Institute (INE) confirmed the figures, extending a trend that began in July after a period of relative stability.
INE data showed that prices for fuels and lubricants for personal transport rose by around 10 percent in one month. Liquid fuel prices increased by 8.4 percent.
Transport costs rose the most. The sector’s annual inflation rate reached 9.5 percent, with diesel prices up 30.3 percent and petrol up 16.9 percent. A 10-cent discount per litre on hydrocarbon taxes in August offered brief relief. Under a safeguard clause in the government’s plan, the diesel discount rose to 20 cents per litre for September after diesel prices increased by more than 15 percent in July. Petrol did not meet the threshold, so its discount fell to 5 cents per litre this month, despite an increase of nearly 17 percent in August.
Food and non-alcoholic drinks also became more expensive. Annual price growth reached 2.3 percent, up seven tenths from the previous month. Some items saw much sharper increases: fresh berries rose by 35.7 percent, citrus fruits by 17.1 percent, green legumes by 15.9 percent and eggs by 12.5 percent. Beef and fresh or frozen fish also cost more.
Outside supermarkets, the biggest annual price hikes were in liquid fuels, up 46.4 percent, diesel, up 30.3 percent, jewellery and wristwatches, up 24 percent, and waste collection services, up 22.7 percent. By contrast, domestic air travel fell by 16.4 percent, international flights by 15.3 percent, train travel by 9.3 percent, newspapers by 5.9 percent and package holidays by 5.4 percent.
Reuters reported that basic inflation eased to 2.9 percent even as headline inflation rose sharply in August, pointing to pressure from volatile energy and fuel prices rather than broad-based demand. INE and Investing.com data also confirmed the gap between overall CPI and core inflation.
Consumer prices rose by 0.7 percent from July. Transport, particularly higher fuel and lubricant costs for personal vehicles, and housing, where liquid fuel, electricity and gas all increased, drove the rise. The biggest monthly jumps were in legumes, up 19.1 percent, car rentals, up 17.2 percent, and motorhomes, up 12 percent. Domestic air travel and train tickets, meanwhile, became cheaper.
Annual inflation rose in all of Spain’s autonomous communities in August. Cantabria recorded the highest rate, at 5.1 percent, while the Canary Islands had the lowest, at 3.8 percent. The harmonised index (IPCA) also rose, reaching 4.6 percent, up seven tenths from July.
Spain’s inflation reflects unstable energy markets and the limits of government intervention. The rapid withdrawal of subsidies, combined with external shocks, has left consumers exposed to unpredictable price swings. Targeted discounts offer some relief, but not lasting stability. The data points to a difficult autumn for Spanish families, whose cost of living is shaped by factors beyond their control.
