Spain’s Inflation Rate Drops to 2.3% in January 2026, Driven by Falling Energy Prices
The latest data from Spain’s National Statistics Institute (INE) reveals that the year-on-year increase in the Consumer Price Index (CPI) fell to 2.3% in January 2026, a decrease of six-tenths of a point from the previous month. This marks the largest drop since March 2025, primarily influenced by falling energy prices. Core inflation held steady at 2.6% for the third consecutive month.
Overall Data Overview
According to the final INE data, the annual CPI rate for January was 2.3%, one-tenth of a point lower than the preliminary estimate of 2.4% and six-tenths of a point down from 2.9% in December 2025. On a month-on-month basis, the CPI fell by 0.4%. The annual rate for housing prices dropped to 2.7%, down three-tenths of a point from the previous month, while the annual rate for transport was -0.1%, a decrease of nearly two-tenths of a point.
Key Influencing Factors
Energy prices were the main driver behind this inflation decline. The rise in electricity prices was significantly lower than in January 2025, leading to a notable slowdown in housing inflation. A decrease in fuel prices further pulled down transport costs. Additionally, clothing and footwear saw a month-on-month drop of 13.1% due to seasonal sales. Leisure, sports, and cultural activities decreased by 2.8% month-on-month due to falling prices for package holidays, and transport costs fell by 1.1% month-on-month.
Core Inflation and Category Performance
Core inflation, which excludes energy and fresh food prices, remained at 2.6% for the third consecutive month. The annual rate for food and non-alcoholic beverages has slowed, but with no significant change in the specific price increases. The overall data shows that energy-related categories made the largest negative contribution to the annual inflation rate.
Regional Differences
By autonomous community, Madrid had the highest inflation rate at 3%, followed by Ceuta at 2.9%, and Cantabria and the Valencian Community, both at 2.5%. The regions with the lowest inflation rates included La Rioja, the Region of Murcia, Galicia, Castile-La Mancha, and Asturias, all at 1.9%. The national average stands at 2.3%.
