Overview

• Consumer price growth slowed for a fourth consecutive month, registering 1.9% in May—the lowest reading since September 2024.
• The rate slipped below the ECB’s 2% threshold, marking a return to the central bank’s price objective.
• Underlying inflation excluding food and energy eased from 2.4% in April to 2.1% as tourism services prices moderated.
• Cheaper electricity from expanded renewable output, along with lower fuel and gas costs, were key drivers of the broader price decline.
• The Economy Ministry says Spain continues combining decelerating inflation with one of the strongest growth rates among developed economies.