The Instituto Nacional de Estadística (INE) reports annual inflation of 4.9 per centin October 2026, based on preliminary data. The inflation rate was thus unchanged from September and remained at its highest level since February 2023. Core inflation, which excludes energy and fresh food, stood at 3.1 per cent and was also unchanged.
The main factor holding prices back in October was the trend in fuel prices. According to the statistics authority, energy’s contribution to the overall index was lower than in the previous month. This followed government fuel concessions agreed at the end of September. With the Real Decreto-ley 25/2026 on 29 September 2026 the government clarified temporary relief measures that lowered prices at the pump and thereby eased immediate price pressures. The measure applies particularly to diesel and petrol and was reflected in the fuel price sub-index.
According to reports by EFE and RTVE the figures are consistent with the INE’s advance release. Both media outlets noted that the government discounts mainly affected transport costs, while prices in other goods and service groups continued to rise. This explains why core inflation remains elevated at 3.1 per cent, even though the energy component is contributing less to the increase.
The year-on-year burden on households remains clearly perceptible. The overall basket of goods and services was 4.9 per cent more expensive in October, although price trends varied considerably by category. Services and durable goods continued to register notable increases. At the same time, temporary relief at petrol stations stabilised transport costs. How sustainable this effect will be depends on future prices in crude oil and product markets, as well as whether and in what form the concessions are extended or adjusted.
In economic policy terms, the combination of persistent headline inflation and robust core inflation presents a divided picture: fiscal measures are providing short-term relief in parts of the energy sector, while the core rate points to continuing broad-based price pressures. Inflation therefore remains a key issue for government and businesses – and for consumers, who feel its effects directly at tills and on bills.
Editor: Daniel Mayer (Article created with AI assistance).