Spain's Consumer Price Index reached 4.9% in October 2026, according to data confirmed by the National Statistics Institute on Friday. Core inflation, excluding energy and unprocessed food, held at 3.1%, driven by gas prices and tourist package costs.
Electricity inflation hit 11.1% while fuel costs remained over 15% higher year-on-year. To mitigate this, the government is extending a 20-cent-per-litre fuel discount into December and maintaining price caps on the Natural Gas Last Resort Tariff (TUR).
While services inflation has stayed at or above 3.9% since spring, food price growth moderated to 2.4% in October. Analysts at Funcas and BBVA Research forecast a further decline in the headline rate to between 4.5% and 4.6% by the end of the year.
