Spain's annual inflation rate accelerated sharply in August, with rising fuel costs pushing headline inflation to its highest level in more than a year, according to preliminary data released by INE, the country's national statistics office, on 28 August 2026.

Key figures (INE flash estimate)

• National CPI: +4.3% year-on-year vs +4.2% expected; prior reading +3.6%
• HICP: +4.5% year-on-year vs +4.6% expected; prior reading +3.9%
• Core CPI: +2.9% year-on-year vs +3.0% prior

The main factor behind the acceleration was the fuel and lubricants component, where prices increased this August compared with the declines recorded in August 2025. The comparison against last year's weakness in energy prices generated a significant upward base effect, making fuel costs the largest single contributor to the rise in headline inflation.

Food and non-alcoholic beverages also added to inflationary pressures. Although prices in this category declined during the month, the decrease was smaller than the one seen in the same period last year, resulting in a higher year-on-year contribution to the overall CPI.

Despite the sharp increase in the headline measure, underlying inflationary pressures eased slightly. Core inflation, which strips out the food and energy components, is estimated to have slowed to 2.9% from 3.0% in July. The divergence between the headline and core measures was therefore largely driven by energy-related factors rather than a broad-based acceleration in domestic price pressures.

As a member of the eurozone, Spain's national inflation prints feed into the euro-area aggregates monitored by the European Central Bank, which targets 2% inflation as measured by the harmonised index. That makes the August flash estimate relevant beyond Spain itself, even though INE's figures are preliminary and will be followed by final readings later.

Source: investingLive