FX.co ★ Spain Inflation Rate Revised Slightly Higher to 2%

Spain's annual inflation rate was slightly revised upward to 2% for May 2025, from an earlier estimate of 1.9%. Despite this adjustment, inflation continued to decelerate for the third consecutive month, registering the lowest level in seven months, a decline from 2.2% in April. The primary upward pressure on inflation came from food and non-alcoholic beverages, which increased by 2.5%, an acceleration from April's 2%, driven largely by rising fruit prices. Conversely, the most significant downward impacts were observed in the recreation and culture sector, with inflation easing to 0.5% owing to decreasing prices for tourist packages, and in housing costs, where prices rose at a moderated pace of 3.8%, largely attributable to lower electricity costs. Month-over-month, the Consumer Price Index (CPI) nudged up by 0.1%, surpassing the initial expectation of no change, yet still marking the smallest monthly rise since the preceding September. Meanwhile, the annual core inflation rate eased to 2.2%, slightly higher than the preliminary figure of 2.1%, but down from 2.4% in April.