January Inflation Update

Spain's annual inflation rate for January has been adjusted to 2.9%, a slight revision from the preliminary estimate of 3%, according to the final report released by the National Statistics Office (INE) on Friday. This marks an increase from December's inflation rate of 2.8%.

Key Drivers of Inflation

The rise in inflation was primarily fueled by increases in transportation and housing prices. Transportation prices saw a 1.3% year-over-year increase, while housing prices soared to an annual inflation rate of 7.9% in January.

Monthly and Core Inflation

On a monthly basis, consumer prices edged up by 0.2%. The Harmonized Index of Consumer Prices (HICP) experienced a 2.9% year-on-year increase but saw a slight decrease of 0.1% from December. The core inflation rate, which excludes unprocessed food and energy products, was recorded at 2.4% for the year.