FX.co ★ Spain Inflation Rate Confirmed at 5-Month Low of 2.3%

Spain's annual inflation rate slowed to 2.3% in March 2025, reaching its lowest point in five months, a decrease from February’s 3%, consistent with preliminary forecasts. This marks a notable decline following five months of consecutive inflation increases, largely attributed to a significant reduction in housing and utility expenses, which increased by 5.7% as opposed to the previous month's 9.8%, with electricity prices dropping significantly (12.8% compared to 28.1%). In addition, there was a decrease in transportation costs (-0.9% versus 0.3%), mainly due to lower fuel prices, and a decline in recreation and culture expenses (-0.3% compared to 1.4%). The core inflation rate, which excludes volatile items such as food and energy, was confirmed at 2% for March — the lowest since November 2021 — compared to February's 2.2%. On a monthly basis, the Consumer Price Index (CPI) increased by 0.1%, aligning with earlier estimates, following a 0.4% rise the previous month.