The Consumer Price Index (CPI) in Spain rose by 0.4% in February compared to the previous month, increasing its year-on-year inflation rate by one-tenth to 3%, the highest level since last June, when it reached 3.4%.

This data was published on Friday by the National Institute of Statistics (INE).

With this uptick, year-on-year inflation has now increased for five consecutive months.

The INE indicated that the rise to 3% was primarily attributed to higher electricity prices, contrasting with the price declines seen in February 2024. As a reminder, on January 1, 2023, the value-added tax (VAT) on electricity was restored to 21%, up from the 10% that was applicable until December 31, 2024.

Conversely, fuel and lubricants for personal vehicles had a dampening effect on inflation in February as their prices increased less than in the same month in 2024. In detail, the housing group saw its year-on-year inflation rate rise by two points in February to 9.8% due to increased electricity prices, while the transportation group reduced its year-on-year rate by one point to 0.3%, influenced by the prices of fuels and lubricants.

The Ministry of Economy, Trade and Industry emphasized that the inflation rise in February is "fundamentally" explained by the increase in electricity prices.

At the same time, the underlying inflation rate, which excludes unprocessed food and energy products, fell to its "lowest rate in over three years."

Specifically, underlying inflation decreased by two-tenths in February to 2.2%, which is eight-tenths below the general index and the lowest rate since December 2021, which was also recorded at 2.1%.

This underlying inflation figure is one-tenth higher than previously estimated at the end of last month (2.1%), while the general CPI (3%) and the monthly change (0.4%) aligned with initial estimates.

The department led by Carlos Cuerpo also highlighted that the price of olive oil sharply declined in February, dropping by 32.3% over the last year.

Amid international uncertainty, Spain continues to maintain the highest growth rate among the major economies in the eurozone, compatible with moderating prices and improving citizens' purchasing power, according to the Ministry of Economy.

However, food prices accelerated once again, reaching a year-on-year rate of 2.2%, four-tenths higher than in January.

In terms of harmonized consumer price index (IPCA), it remained at 2.9% year-on-year in February and increased by 0.4% month-on-month.

For the month of February (compared to January), the CPI increased by 0.4%, two-tenths more than the increase recorded at the beginning of the year.

This rise in February marks five consecutive months of monthly inflation increases.

The monthly CPI rise was driven by price increases in the hotels, cafés, and restaurants group by 0.7% due to higher costs in dining and accommodation services, as well as a 0.6% increase in the transportation group due to rising prices for fuels and lubricants for personal vehicles and for their maintenance and repair.

Conversely, clothing and footwear prices decreased by 1.5% in February due to winter sales.