FX.co ★ Spain Inflation Rate Softens to 7-Month Low of 2.4%

Spain's year-on-year inflation rate decreased to 2.4% in January 2026 from 2.9% in December, slightly surpassing analyst predictions of 2.3%, according to preliminary data. This represents the third consecutive month of slowing price hikes and the lowest inflation figure since June 2025. The decline in inflation is largely due to a more moderate increase in electricity prices compared to January 2025, along with decreases in fuel and lubricant costs for personal vehicles, which had seen increases in the same month the previous year. The core inflation rate, which excludes volatile items like food and energy, held steady at 2.6% for the third consecutive month in January, marking a one-year high. Meanwhile, the EU-harmonised CPI rose by 2.5% compared to the previous year, after having increased by 3% in December, slightly above predictions of a 2.4% increase. On a monthly basis, the CPI dropped by 0.4%, following a 0.3% rise in December, and the EU-harmonised index saw a decrease of 0.7%, after a 0.3% increase in the preceding month.