Reported by Consejeros Editorial Team
The CPI maintained its year-on-year rate at 3.2% in May and has now been above 3% for three consecutive months amid the energy shock caused by the war in Iran, according to data released on Friday by the National Statistics Institute (INE) and reported by Europa Press.
The agency explained that in May’s inflation performance, transport and recreational activities, sport and culture pushed prices up, as their prices fell less than in May 2025, whilst clothing and footwear, as well as food and non-alcoholic beverages, pulled prices down. The latter kept their prices stable in May, compared to the rise experienced in the same month last year.
As for core inflation, according to the INE’s estimate, it rose by one-tenth of a percentage point in May, to 2.9%.
In monthly terms (May compared to April), the CPI rose by 0.1%, moderating the 0.4% rise seen in April by three-tenths of a percentage point. With May’s increase, monthly inflation has now risen for four consecutive months.
The department headed by Carlos Cuerpo has emphasised that inflation remained stable in May “thanks to the government’s measures and the ‘renewable shield’ against a backdrop of high volatility in energy prices due to the war in Iran”.
With regard to anti-crisis measures, following the reduction in electricity bills in April,from 1 June, the gradual phasing out of the reduction in the Special Tax on Electricity and VAT applicable to electricity, natural gas, briquettes, pellets and firewood will begin. The measures regarding the Tax on the Value of Electricity Production will continue until 30 June.
The tax measures on fuels – reduced rates of the Hydrocarbons Tax, 10% VAT on petrol, diesel and biofuels, and a partial refund on commercial diesel – will remain in force until 30 June.
Sector-specific measures will also remain in force: aid for farmers and hauliers, as well as the enhanced discounts under the social electricity tariff (42.5% for vulnerable consumers and 57.5% for severely vulnerable consumers).
The Government will continue to monitor price trends in consultation with social partners and the sectors most affected to determine whether it is necessary to maintain certain measures beyond 30 June, to abolish them, or to introduce new ones.
