Catalonia reports 3.0% GDP growth amid rising inflation

Catalonia's economy shows mixed indicators according to recent data. The region's GDP grew by 3.0% year-on-year in the second quarter of 2026, outperforming both the Spanish national average of 2.7% and the EU rate of 1.2%. This growth was primarily driven by internal demand, including a 3.4% increase in household consumption and a 3.2% rise in public administration consumption. However, gross capital formation saw a decline of 0.5%, specifically due to a 3.8% drop in investment in equipment goods.

In terms of cost of living, the Consumer Price Index (CPI) in the Lleida and Alt Pirineu i Aran regions rose to 4.2% in August, the highest interannual increase since April 2023. This spike is largely attributed to a 14.6% rise in electricity and fuel costs, influenced by the war in Iran. Within the Lleida demarcation, housing, water, electricity, and gas saw a 9.4% increase, while transport rose by 8.3%. Across Catalonia, the overall CPI rose by 0.5% in August, reaching a 4% interannual rate, marking its highest level since March 2023.