Spain's annual inflation rate accelerated to 4.9% in September, a six-tenths increase from August, according to the flash estimate published by the National Statistics Institute (INE) on Tuesday. The sharp rebound was largely driven by higher prices for vehicle fuel and lubricants, which rose again this month after falling in September 2025.
The INE also pointed to package holidays as a contributing factor, as their prices declined less than they did a year earlier. The surge brings inflation to its highest level since February 2023, when it stood at 6%.
Energy and food prices lead the rise
By category, energy products saw a 21.6% annual increase, while unprocessed food prices climbed 5.8% and services rose 3.9%. Core inflation, which excludes unprocessed food and energy, edged up by two-tenths to 3.1%.
On a monthly basis, consumer prices rose 0.3% in September compared with August, the largest increase for that month since 2021. This marks the eighth consecutive month of positive monthly inflation, following a 0.4% decline in January.
The Harmonised Index of Consumer Prices (HICP), which allows for cross-country comparisons within the European Union, showed an annual rate of 5%, up four-tenths from August. The core HICP rate stood at 3.2%.
The latest figures add to concerns about the cost of living across the eurozone, as energy markets remain volatile. Thin gas reserves and high prices are already a worry for the coming winter, and the rebound in Spanish fuel costs reflects broader pressures.
In neighbouring Italy, the government has extended fuel tax cuts to May as pump prices climb, a measure aimed at cushioning the impact on households and businesses. Italy's extension of fuel tax cuts highlights the regional challenge of balancing fiscal support with inflationary pressures.
The rise in Spanish inflation comes amid a broader European debate about energy security and the transition to cleaner fuels. Oil price surges have been driven by geopolitical tensions, adding to the upward pressure on consumer prices.
For Spanish households, the acceleration in inflation is a setback after months of gradual easing. The INE's flash estimate is based on data collected from around 29,000 establishments and will be confirmed in mid-October.
Economists will be watching whether the European Central Bank's recent rate hikes are sufficient to bring inflation back to its 2% target across the eurozone. Spain's core inflation, at 3.1%, remains above the ECB's goal, suggesting that underlying price pressures are still persistent.
The Spanish government, which has been grappling with a prolonged budget impasse, faces renewed pressure to address the cost-of-living crisis. The housing market, already a flashpoint, could see further strain as inflation erodes purchasing power.
As Europe heads into autumn, the inflation picture remains uneven. While some countries have seen price growth moderate, Spain's latest data serves as a reminder that the battle against high prices is far from over.
