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Spain's annual inflation rate decelerated for the second consecutive month, reaching a four-month low of 2.9% in December 2025, down from 3.0% in November and slightly above the anticipated 2.8%, according to preliminary estimates. This slowdown was primarily attributed to a decrease in fuel and lubricant prices for personal vehicles, contrasting with the rise noted in December 2024. Additional easing came from the slower increase in leisure and culture prices compared to the previous year. Conversely, the prices of food and non-alcoholic beverages continued to elevate, rising more sharply than in December 2024. The core inflation rate, which excludes the more volatile categories like food and energy, remained steady at a one-year high of 2.6% in December, unchanged from November. On a European Union-harmonized basis, the Consumer Price Index (CPI) increased by 3% year-on-year, following a 3.2% rise in November, aligning with predictions. On a monthly basis, both the overall CPI and the EU-harmonized index increased by 0.3%.
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