The Spanish National Institute of Statistics (INE) estimates annual inflation for November at 3,0 %, slightly slower than the 3,1 % recorded in October. A modest but significant slowdown, which confirms the gradual cooling of prices in the Eurozone's fourth-largest economy. The European harmonized inflation rate (HICP) instead stands at 3,1 %, keeping Spain above the 3% threshold for the third consecutive month.
The evolution of the general index reflects divergent dynamics: on the one hand the drop in electricity compared to November 2024 contributes to reducing inflationary pressure; on the other hand, the contribution of food products and non-alcoholic beverages, which slowed the overall decline in prices. The INE also reported a dampening effect linked to the "leisure and culture" category, where prices are falling but less sharply than a year ago.
The picture appears more complex when looking at thecore inflation: excluding energy and unprocessed foods, the annual rate rises to 2,6 %, a tenth more than in October. This indicates that inflationary pressure is becoming more entrenched in non-volatile sectors, reflecting more uniform increases in industrial goods and services.
On a monthly basis, the consumer price index increases by 0,2 % Compared to October, confirming that price pressures have not fully subsided. For households and businesses, the current scenario indicates a situation still characterized by high costs across various segments of daily spending, with implications for consumption, operating margins, and investment planning.
From a macroeconomic perspective, the November data keeps Spain on an inflationary trajectory above the eurozone average, a factor that could influence both wage policy decisions and the European Central Bank's assessments in the coming months. Growth in the core component, in particular, suggests persistent price pressures, despite the easing of energy costs.
Pending the final estimate, expected in mid-December, the picture painted by INE suggests a fragile balance between downward and upward pressures: electricity is driving a slowdown, but food and services continue to be the main drivers of price dynamics. This balance will continue to define the pace of the consumption recovery and the evolution of purchasing power in the final part of 2025.
