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Saturday, Jul 12, 2025

Spain's Consumer Price Index Drops to 2% in May Amidst Stable Energy Prices

A steady decline in annual inflation in Spain highlights the influence of lower electricity and tourism-related costs.
The Consumer Price Index (CPI) in Spain declined to 2% in May, a decrease of two-tenths of a percentage point compared to April, as confirmed by the National Statistics Institute (INE) on June 13, 2025. This new figure represents the lowest inflation rate recorded since October of the previous year, which stood at 1.8%.

The INE attributes this reduction in the annual inflation rate to favorable developments in tourism-related services, such as passenger air transport, and a favorable trend in electricity prices.

This decrease marks the third consecutive month of declining year-on-year inflation rates.

The core inflation, which excludes volatile items like energy and fresh food, was reported at 2.2%, also two-tenths lower than in April.

Additionally, the Harmonized Consumer Price Index (HICP) saw a similar reduction of two-tenths, landing at 2% in May, with monthly figures remaining unchanged.

In a monthly comparison, the CPI experienced a modest increase of 0.1%, despite earlier data released towards the end of the last month suggesting a stabilization of prices.

The Ministry of Economy noted that inflation in Spain remains contained at levels consistent with the European Central Bank's reference level while being juxtaposed with one of the highest economic growth rates among major European economies.
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