Spain's annual inflation rate remained at 3.2% in May for the third consecutive month, driven by transport costs and holiday packages, while core inflation rose to 3%. The Spanish government attributes the stability to its anti-crisis measures.
The persistent inflation rate and rising core inflation in Spain could influence future European Central Bank monetary policy decisions and impact consumer purchasing power.
Inflation in Spain held steady at 3.2% year-on-year in May for the third consecutive month, according to final data from the National Statistics Institute (INE). This persistent inflation rate is occurring against a backdrop of volatile energy prices influenced by the conflict in Iran.
Factors contributing to the upward pressure on prices included increases in transport costs and package holidays, which fell by less than in the previous year. Conversely, prices for clothing, footwear, food, and non-alcoholic drinks eased, with their annual inflation rate dropping to 2.2%.
A complicating factor highlighted in the report is the rise in core inflation, which excludes volatile energy and fresh food prices. Core inflation increased to 3%, a tenth of a point higher than previously indicated and two-tenths above April's figure. The harmonised CPI, used for comparison across the EU, stood at 3.6% year-on-year.
The Spanish government attributed the inflation's stability to its anti-crisis measures and 'renewables shield', estimating that its response plan has reduced headline inflation by over one percentage point. The executive plans to convene meetings with representatives from the energy, agri-food, and industrial sectors to assess the war's impact and potentially adjust existing measures.
Pick the topics you care about. Get only what matters, on your cadence.