Spain’s inflation holds at 4.9% as lower motor fuel prices offset pressure from gas and heating costs

Spain's annual inflation rate remained steady at 4.9% in October, according to preliminary figures from the National Statistics Institute (INE). The rate, which has been at its highest level since February 2023, remained unchanged from September. The core inflation, which excludes energy and unprocessed food, also held steady at 3.1%, the highest level since March 2024.

Motor fuels and lubricants were the main factor restraining inflation, as their prices fell more sharply in October compared to previous months. Food and non-alcoholic drinks, as well as clothing, helped to contain inflation by causing less price increases. However, gas prices rose sharply, alongside liquid fuels and package holidays, exerting upward pressure on the annual comparison.

Despite the stability in the headline rate, prices continued to climb, increasing by 0.6% compared to September, double the previous month's 0.3% rise. The steady inflation is expected to be due to the government's measures to cushion households and businesses from the economic consequences of the Iran conflict. The final inflation figures for October, including a detailed breakdown by spending category, are set to be released on November 13.