Spain's annual inflation rate stayed at 3.2 percent in June 2026, marking the third consecutive month at that level, according to preliminary data from the Spanish National Statistics Institute (INE) released on Monday.
Lower vehicle fuel costs offset the expiration of temporary government tax discounts on gas and electricity, keeping consumer prices steady.
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Inflation has accelerated from around 2 percent in January and February, driven by geopolitical conflicts in the Middle East that disrupted energy markets.
The Spanish Ministry of Economy said fiscal support measures introduced in late March reduced the overall inflation rate by nearly one percentage point during the period.
However, domestic energy bills face renewed upward pressure after temporary tax cuts on electricity and gas expired on June 1, counterbalanced by cheaper fuel at the pumps.
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Core Inflation Eases Slightly
Core inflation, which excludes volatile fresh food and energy prices, decreased from 3.0 percent to 2.9 percent, indicating that major price increases remain concentrated in the energy sector rather than spreading broadly.
Economists at Bankinter forecast that inflation could rise to around 3.4 percent later this year before declining to about 2.5 percent in 2027, assuming global oil prices stay stable.
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To address ongoing living costs, Prime Minister Pedro Sánchez's administration unveiled a new economic aid package on Monday to support families and heavily affected industries such as transportation, agriculture, and manufacturing after July 1.
