- Rising electricity prices account for most of the increase
- Core inflation also grows by a tenth of a percentage point and stands at 2.5%
- Food remains “relatively stable,” according to the Ministry of Economy
The Consumer Price Index (CPI) stood at 3.1% year-on-year in October after advancing a tenth of a percentage point over September’s figure, when it returned to the 3% level for the first time since February. This second consecutive rise in the general index lifts it to its highest level since June 2024. Core inflation also advanced in the tenth month of the year to 2.5%, its highest rate since December 2024, breaking two months of stabilization at 2.4%.
The new increase, confirmed this Friday by the National Statistics Institute (INE) with the publication of the definitive inflation data which matches the advance figure, is explained by the hikes in electricity prices, which were larger than in the same month of 2024. A counterweight was provided by prices in the leisure and culture group due to the lower cost of package holidays.
Food, on its part, became 2.4% more expensive in October, the same rate as the previous month, which means it remains “relatively stable,” as indicated by the Ministry of Economy in its evaluation of the data.
The products that have grown most expensive over a year are waste collection (+30.3%), jewelry and imitation jewelry (+26.8%), combined passenger transport (+26.7%), eggs (+22.5%), coffee (+19.4%), and electricity (+18.7%). At the other extreme, the items that have become cheapest since October 2024 are olive oil (-41.6%), sugar (-13.5%), domestic holiday packages (-6.4%), audiovisual equipment (-6%), and personal computers (-4.9%).
In month-on-month terms (between September and October), the CPI rose by 0.7%, with the highest price increases recorded in rail passenger transport (+12.3%) and fruit (+12.0%). Conversely, the leisure and culture group cut its prices by 0.8% over the month due to the drop in package holiday prices.
According to the statistics office, food prices rose by 1.4% due to the higher cost of fruit, meat, milk, cheese, and eggs, as well as oils and fats. In more detail, eggs became 5.1% more expensive during the month (accumulating a rise of nearly 22% since January) and olive oil rose by 2.7% in its first monthly price increase since October 2024 (and the largest since March last year). Although ‘liquid gold’ has reduced its price by 41.6% over the last year, compared to January 2021 the accumulated increase remains at nearly 54%.
In the year’s tally, prices in Spain have risen by 2.4% since January. Seven tenths of this increase correspond to hotels, cafes, and restaurants, while housing —excluding apartment purchases— is responsible for six tenths, and food for half a point.
Source: elEconomista and INE