FX.co ★ Spain Producer Prices Drop in August

In August 2025, Spain experienced a 1.5% year-on-year decline in producer prices, following a revised upward growth of 0.4% the previous month. This decrease marked the first drop in producer prices in three months, driven primarily by a substantial fall in energy prices, declining by 4.5% compared to a 1.9% increase in July. This was largely attributed to lower electricity costs and smaller increments in gas production and pipeline distribution compared to August of the previous year. Additional deflationary pressure was observed in consumer goods, which decreased by 0.9% in contrast to a 1.4% fall earlier, with non-durable goods dropping 1.1% compared to a 1.5% reduction prior, and intermediate goods slipping 0.5% versus a 0.8% decline. Conversely, capital goods saw a price increase of 1.7% compared to the previous 1.9%. When energy is excluded, producer prices saw a minor decline of 0.3%, following a 0.5% decrease in the preceding month. On a month-to-month basis, the Producer Price Index (PPI) decreased by 0.4% in August.