Overview
- INE’s flash estimate leaves Spain above the ECB’s 2% goal with a 2.7% annual average.
- Core inflation registered 2.6% in December and averaged 2.3% in 2025, reflecting a sharper underlying slowdown than headline prices.
- Food and services remain the most persistent sources of price pressure, with processed foods elevated despite a drop in olive oil prices.
- Prices fell markedly from March to June before rising again in the second half, underscoring a gradual and uneven disinflation path.
- Forecasts point to slightly above-target inflation in 2026, with CEOE expecting just over 2% and Funcas around 2.4%, as detailed December data await the final INE release.