RISING fuel prices have caused August’s inflation rate in Spain to soar to 4.3% over 12 months.
Provisional numbers released on Friday by the National Institute of Statistics showed a 0.7% hike on July’s figure.
It’s the highest inflation rate suffered by Spain since February 2023.
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August has been marked by rising fuel costs for motorists and the the rate over 12 months is comparing a situation in 2025 when pump prices were tumbling.
The government had also reduced its tax cuts for petrol and diesel that it introduced earlier in the year due to the Iran crisis.
It will however increase its subsidy on diesel to 20 cents per litre(as opposed to the current 10 cents) from next Tuesday.
Tax on unleaded fuel will be cut further to just five cents per litre.
The Ministry of Economy says the government is ‘maintaining a minute-by-minute monitoring of the impact of the conflict in Iran on the Spanish economy, hand in hand with social agencies and the most affected sectors’.
Rising food and non-alcoholic beverage prices also had an impact on the overall inflation rate, but detailed information will not be published until mid-September.
Core inflation which excludes volatile energy and fresh food prices actually fell over 12 months by 0.1% in August to 2.9%.
But on a month-to-month basis, it was up by 0.4% on July’s total- it’s biggest monthly hike since March.
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