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[BUSINESS] · Spain · 32 sources

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Spain inflation rises to 4.3% in August due to fuel costs

Spain's annual inflation rate rose to 4.3% in August, the highest level since February 2023, according to the National Statistics Institute (INE). This surge was primarily driven by a sharp increase in fuel prices, with diesel costs rising 30.3% and gasoline increasing 16.9% year-on-year. The energy shock is linked to geopolitical tensions in the Middle East, specifically the conflict in Iran and instability in the Strait of Hormuz.

To mitigate the impact on consumers, the Spanish government has implemented fuel subsidies, including a 20 cent per liter reduction on diesel effective September 1. This measure has helped make Spanish diesel among the second cheapest in the European Union at 1.795 euros per liter.

While energy and transport costs have pressured the general index, other sectors showed more stability. Core inflation, which excludes volatile energy and unprocessed food prices, fell slightly to 2.9%. Additionally, inflation for food and non-alcoholic beverages remained relatively contained at 2.3%.

Entities

ANAREC · European Union · Instituto Nacional de Estadística · Iran · Ministry for Ecological Transition · Ministry for the Ecological Transition · Ministry for the Ecological Transition and the Demographic Challenge · Ministry of Economy · Portugal · Spain · UGT CLM

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