Spain Industrial Prices Surge 10.5% in May, Driven by Energy Costs

Key facts

• Spanish industrial prices increased by 10.5% year-on-year in May.
• This marks the fastest pace of increase since December 2022.
• The rise was primarily driven by a 28.2% increase in energy costs.
• Higher prices for electricity generation, transmission, and distribution were key factors.
• Industrial prices also saw a 1.0% increase from April to May.

Spanish industrial prices experienced their most significant year-on-year increase in over a year and a half in May, reaching 10.5%. This surge was predominantly fueled by a substantial 28.2% rise in energy costs, largely attributed to higher prices in electricity generation, transmission, and distribution.

The latest figures follow a revised 8.5% increase recorded in the 12 months leading up to April. The National Statistics Institute (INE) reported that industrial prices also saw a 1.0% rise from April to May.

Historically, increases in industrial prices tend to precede rises in consumer prices, as companies often pass on higher production costs to their customers, potentially contributing to broader inflation.