In Spain, according to the National Institute of Statistics (INE), annual harmonized inflation in March 2025 fell to 2.2% from 2.9% in February, the lowest rate in the last five months and below the forecast of 2.6%. The decline in inflation was driven by a drop in electricity prices due to increased hydropower production following heavy rainfall, as well as lower prices for fuel and motor oil.
Core inflation, which excludes fresh food and energy prices, also fell to 2.0% year-on-year, reaching its lowest level since November 2021.
