Year-on-year inflation rises six tenths in September to 4.9%, its highest level since February 2023. Housing, Euribor, and fuels are tightening household margins.
Year-on-year inflation climbed in September to 4.9%, six tenths higher than in August and its highest level since February 2023, according to data released by the INE and reported by diariopalentino.es. Fuels and lubricants accounted for the bulk of the increase, while the core rate rose two tenths to 3.1%.
The increase is not limited to energy. Price pressures continue to strain the solvency of families and businesses, adding to other factors that absorb a growing portion of salaries.
Housing is one of these factors. The purchase price rose 12.2% year-on-year in the second quarter of 2026, with a 12.9% increase in second-hand properties. In rentals, new contracts are seeing increases close to 10%.
"Practically one in two tenants would fall below the poverty line if rent payments were deducted," notes the study by Fedea.
This report places the poverty rate at 19.5%, which rises to 23.5% when housing costs are deducted. Nearly 1.95 million people fall below the threshold once they face this expense.
Financing adds another twist. The Euribor closed September at 3.247%, compared to 2.187% a year earlier. For a variable mortgage of 150,000 euros over 30 years with a margin of 0.99%, the adjustment means 97.88 euros more per month, about 1,174.56 euros a year.
Salaries are advancing at a different pace. The labour cost per worker grew 4% in the second quarter of 2026, reaching 2,512.68 euros per month, plus 875 euros in contributions. With tax deductions and the cost of living, purchasing power is squeezed.
Recourse to public aid reflects this pressure. Active benefits from the Minimum Vital Income grew 16.6% until September, with 128,868 new benefits that benefit 391,707 more people than a year ago (+16.5%). The average benefit stands at 502.8 euros per month.
The result is cumulative pressure on household budgets: high prices, housing, financing, and supplies. When the cost of living advances faster than the ability to cope, the boundary between the middle class and vulnerability narrows.
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