Spain’s CPI rose +0.3% MoM and +2.9% YoY (vs +2.8% YoY expected) in December 2025, reflecting a modest monthly pickup alongside easing annual inflation.

• The flash CPI annual rate slowed to +2.9% YoY from +3.0% in November, marking a one-tenth deceleration in headline inflation.

• Monthly CPI increased +0.3% MoM in December, indicating short-term price gains despite the softer annual rate.

• Underlying inflation excluding non-processed food and energy held at +2.6% YoY, suggesting stable core price pressures.

• The Harmonised CPI (HCPI) eased to +3.0% YoY, down 0.2 ppts from November, while monthly HCPI also rose +0.3% MoM.

• The annual CPI slowdown was driven mainly by fuel and lubricant prices falling relative to December 2024, reversing last year’s increase.

• Leisure and culture prices continued to rise YoY but at a slower pace than a year earlier, contributing modestly to the deceleration.

• Food and non-alcoholic beverage prices exerted upward pressure, with prices increasing more than in December last year.