Inflation in Spain rose sharply in August. According to the flash estimate from the Instituto Nacional de Estadística (INE) on 28 August 2026 the Índice de Precios al Consumo (IPC) rose by 4.3 per cent year on year. That is seven-tenths of a percentage point higher than in July (3.6 per cent) and the highest figure since February 2023.
The statistics office cites the trend in fuel prices as the main driver. Benzin and Diesel rose noticeably in August compared with the same month last year, whereas they fell in August 2025. This base effect amplifies the current increase. Seasonal factors – including more holiday travel – also contributed to higher prices at the pumps.
The disinflationary effect of food also weakened: the fall in fresh food prices was smaller than a year earlier, so this category exerted less downward pressure on overall inflation. Core inflation, which excludes energy and fresh food, stood at 2.9 per cent according to the INE, still well below the overall rate.
Faster price rises are eroding households’ real incomes and could influence wage negotiations in the coming months. Transport and input costs are also increasing for businesses, potentially feeding through over time into prices in other goods categories. Whether and to what extent the government will respond to the burden of higher fuel prices remains unclear; temporary relief and tax measures have been used in the past. No specific decisions have been announced at present.
The figure now published is the preliminary estimate for August 2026. The INE will release the final figures, broken down by product group, later as usual; small differences are possible. Regardless, the data mark a significant setback in the easing of inflation in Spain and shift the debate away from a slowdown previously driven mainly by falling energy prices and towards renewed strong pressure from the energy sector.
In its statement, the INE points to the drivers mentioned above; a detailed breakdown by basket of goods is expected with the final results. Economic assessments are based on the price structure observed in August 2026; this does not affect broader forecasts.
Editor: Daniel Mayer (Article created with AI assistance).