CSN News: Inflation in Spain rose to 3% in March due to the new tax on electricity.

Thursday, 27th February 2025 at 19:42

The prices in Spain still aren’t under control. According to the Consumer Price Index (CPI), published by the INE on Thursday, the inflation rate in February rose slightly from 2.9% to 3% due to the increase in electricity taxes.

Despite the increase in electricity prices inflation is almost stable due to lower fuel prices than one year ago. This is because the price of a bar of oil has moderated on the international markets.

The cost of this utility has increased because the IVA tax rate on electricity, which was 10% until the end of 2024, is now 21%.

The CPI has risen for five months in a row, and this 3% value is the highest since June 2024.

Spain’s Ministry of Economy reports that core inflation, which excludes volatile commodities and utilities like electricity or fresh foods, fell by three tenths of a percent to 2.1%. “Within the price margins established by the European Central Bank” (ECB), it is within the range of the European Central Bank. The underlying inflation rate is at its lowest since December 20,21, when the Ukraine invasion triggered a price crisis.

Monthly, the CPI rose by four tenths a percent and the inflation rate has been rising for five months in a row.

It will take until the 14th of March, when the INE releases the final CPI figures for February, to determine which particular items and food have risen most in price to drive the rate above 3%.