Key facts
- Spain's annual inflation rate held at 3.2% in June for the third consecutive month.
- Core inflation eased to 2.9% year-on-year in June.
- Higher electricity and gas prices pushed inflation up, while fuel costs decreased.
- Food price increases slowed to 1.9% in June.
- Electricity prices rose 6% year-on-year in June after VAT reductions ended.
- Housing costs saw their increase accelerate to 4.7% in June.
Spain's inflation rate remained stable at 3.2% in June for the third consecutive month, according to data from the National Statistics Institute (INE). This figure, while steady, remains significantly above the European Central Bank's 2% target. The rise in electricity and gas prices was a primary driver, offsetting a decrease in fuel prices that was linked to a brief truce in the Middle East. Core inflation, which excludes volatile energy and unprocessed food items, eased slightly to 2.9% year-on-year, down from 3% in the previous month and in line with the INE's flash estimate. Electricity prices saw a year-on-year increase of 6% in June, a reversal from previous months' decreases, partly attributed to the government's decision to end reduced VAT rates. Food and non-alcoholic beverages provided some relief, with their price increase slowing to 1.9% in June. Fuel prices saw more moderate increases due to the Middle East truce, though tensions have since resumed. Housing costs rose significantly, with their price increase accelerating to 4.7%, while transport costs increased by 5.1%. Prices for restaurants and accommodation also saw marked rises, with accommodation surging 9.3% year-on-year. Madrid recorded the highest provincial inflation at 3.8%, while Extremadura saw the smallest regional price rise at 2.4%.