Spain Inflation Steady at Five-Month High 2.7% in August

Spain's inflation rate remained steady at 2.7% in August 2025, matching July's figure and slightly below market expectations of 2.8%, primarily due to rising electricity prices offsetting decreases in food and beverage costs. Core inflation in Spain, excluding volatile items like energy and fresh food, rose slightly to 2.4%, marking a four-month high. The inflation stability reflected mixed trends, with fuel prices pushing upward but food and electricity prices either falling more sharply or rising more slowly than the previous year. In Italy, inflation remained stable at 1.7% year-on-year in August, with a slight decrease in consumer prices month-on-month and a modest increase in core inflation to 2.2%. Eurozone consumer inflation expectations held steady at 2.6% in July 2025, with higher inflation perceptions among lower-income groups and rising unemployment expectations. Overall, inflation across Spain, Italy, and the Eurozone shows signs of stabilization, though energy costs and economic uncertainties continue to influence trends.