FX.co ★ Spain Inflation Rate Slows to 2.2% in April, Still Above Forecasts

In April 2025, Spain's annual inflation rate decreased for the second consecutive month to 2.2%, marking the lowest rate in six months, although it surpassed market expectations of 2%, according to preliminary data. This deceleration is mainly due to a reduction in gas prices, contrasting with the rise observed in April 2024, along with a more pronounced drop in electricity prices compared to the same period last year. Additionally, prices for fuel and lubricants for personal vehicles contributed to this moderation by reversing the increase recorded in April 2024. Conversely, the prices for leisure and culture experienced a significant rise, recovering from a decline in the same month the previous year. The core inflation rate, which omits volatile components such as food and energy, increased to 2.4% in April, up from 2% in the preceding month. Month-on-month, the Consumer Price Index (CPI) advanced by 0.6%, following a 0.1% uptick in March. The EU-harmonised CPI grew by 2.2% annually, exceeding market predictions of 2%, and rose by 0.6% month-on-month, while analysts had anticipated a 0.4% increase.