As cost pressures ease, the inflation rate in Spain falls to 2.4%

The moderator is closely related to energy prices

The index has fallen in comparison to the same time last year. Fuel and electric costs, which have pushed inflation up for most of 2025, now exert less upward pressure.

Energy offers breathing space — for now

Low oil prices, and more stable electric tariffs are the main factors behind January’s cooling statistics. This has meant a slight reduction in petrol prices and less shocks to monthly energy bills for many families.

The most unpredictability in Spain’s inflation is energy, according to economists. Renewing geopolitical tensions, or disruptions in supply could reverse recent gains quickly, especially as demand increases later this year.

Food prices are stubborn

Food prices are still a burden to household budgets, even though energy costs have dropped. Basic staples, such as fresh fruit, meat and dairy products, remain above pre-pandemic prices, even though the monthly increases have slowed.

Inflation in the supermarket has not accelerated, but it also isn’t falling significantly. For lower-income households and pensioners, food spending remains the most visible reminder that inflation has not disappeared — it has simply changed shape.

Prices for services and housing are still on the rise

Other areas that are resisting the downward pressure include services such as transport, hospitality and personal care. Prices are high due to wage adjustments and labour shortages, as well as strong tourism demand, particularly in cities and coastal areas.

The cost of housing continues to rise in Spain, but at a different pace. Rent inflation is still acute in areas of high demand, which reinforces the feeling that official inflation numbers do not always reflect actual experience.

What it means for householders in 2026

Spain’s inflation rate is now 2.4%. This brings it closer to the European Central Bank long-term target and eases concerns about new monetary tightening. This may increase the expectation of borrowers that interest rates won’t rise any further.

The message for households is nuanced. The price increase is slowing but the prices themselves have not fallen. Many families are still feeling squeezed because wages haven’t risen equally across sectors.

Fragile improvement

The January figures are reassuring, but they do not represent a complete reset. In 2026, Spain’s inflation is more likely to show a gradual decline than a rapid one, as a result of energy markets, food chains, and the broader European economy stability.

For now, inflation is cooling — but it remains firmly part of daily life.

Sources:

INE, Banco de España