With the advance of the year-on-year CPI in the first month of 2025, inflation has recorded four consecutive months of increases, reaching its highest value since June, when it stood at 3.4%. The INE includes in the advance data of the CPI an estimate of core inflation (excluding unprocessed food and energy products), which decreased by two tenths in January, down to 2.4%.
In monthly terms (January 2025 compared to December 2024), the CPI increased by 0.2%, three tenths more than it did in December. This is the largest rise in inflation for a January since the year 2000. The INE has explained that the rise in the CPI to 3% is due to the increase in fuel prices and, to a lesser extent, to electricity prices, which rose more in January than in the same month of the previous year. Starting from January 1 of this year, the VAT on electricity has returned to 21%, compared to the rate of 10% that was applied until December 31, 2024.