Spain's harmonised CPI reached 5% in September, compared to 3.8% in the Eurozone. Services explain more than half of the gap, according to the Bank of Spain.
Spain's harmonised inflation stood at 5% year-on-year in September, compared to 3.8% in the Eurozone, according to the latest data from the National Institute of Statistics (INE). The difference widens the gap that the country has been experiencing since May 2025.
According to La Opinión de A Coruña, the sharpest price increases are impacting the purchasing power of families and the competitiveness of businesses. Behind the differential are a combination of increased demand dynamics, the impact of the energy crisis, and persistent rises in services.
Javier Ferri, a researcher at Fedea and a professor at the University of Valencia, reminds us that:
“historically, Spain has suffered a higher inflation rate than Europe”
According to Ferri, this difference is due to greater rigidities in the goods and services markets.
The latest quarterly report from the Bank of Spain quantifies the causes. Of the 1.22 points that separate Spanish inflation from the Eurozone average, 0.64 points correspond to services. Food contributes 0.31 points, energy 0.24, and non-energy industrial goods 0.04.
The structure of consumption also plays a role. Services represent 51.4% of the Spanish price basket, compared to 46.7% in the Eurozone, and their prices are rising approximately one percentage point more in Spain.
Ferri points out that “the services sector, especially hospitality and catering, are the main contributors” to the differential, a situation he relates to the difficulties these activities face in increasing their productivity. The strength of tourism and consumption supports demand and facilitates the transfer of costs to final prices.
Between January and August, 46% of service categories recorded increases above 4%, compared to an average of 39% during 2025. Nevertheless, Ferri highlights that wage pressures and business margins are not growing at the same pace, which prevents the gap from being even larger.
Energy explains a significant part of the recent widening of the differential. The crisis stemming from the conflict in the Middle East has driven up oil and gas prices, affecting fuels, electricity, and business costs. The Bank of Spain notes that the Spanish electricity market passes on gas price increases to bills more quickly than other European countries, partly due to the high adjustment of electricity prices.
Without the tax cuts applied in Spain, according to the Bank of Spain, energy inflation in August would have reached 21.6%, compared to the 17.1% observed. The reduction of 20 cents per litre in fuels, approved by the Government, will continue in November, while there will be no reduction in electricity prices.
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