CONSUMERS in Spain will get more bang for their buck in the new year after the rate of inflation fell for the second month in a row.
According to provisional figures released on Tuesday by the National Statistics Institute (INE), inflation fell by one-tenth of a percentage point in December from November, slowing to 2.9 per cent.
That is the second consecutive monthly fall after an equal decrease in November, which was the first dip in over six months.
Overall, Spain’s inflation rate is forecast to average 2.7 per cent across 2025, which the economy ministry said would allow households to ‘continue to recover purchasing power’.
That stands one-tenth of a percentage point lower than the rate across 2024.
The INE says December’s slowdown was driven by lower fuel prices along with a dip in the cost of leisure and cultural activities – although the price of food and non-alcoholic beverages has continued to climb.
READ MORE: Spain has become Europe’s standout economy, according to the FT
According to leading bank BBVA, the rate remains elevated above the European Central Bank’s (ECB) target of 2 per cent thanks to electricity prices, which have surged by around 8 per cent since April’s unprecedented blackout.
That is evidenced by the rate of core inflation – a metric that excludes food and energy prices – which has fallen to 2.3 per cent this year from 2.9 per cent in 2024.
Month-on-month, consumer prices rose by 0.3 per cent over the festive period compared to December.
Forecasts suggest inflation will continue to moderate slowly, falling to 2.5 per cent next year before a steeper dip to around 2.2 per cent in 2027.
The government has confirmed that contributory pensions for more than 10.4 million citizens will rise by 2.7 per cent in 2026 – representing an average annual increase of €570 per person.
Click here to read more Spain News from The Olive Press.
