Spanish inflation surged in March, reaching its highest level since June 2024, mainly due to rising energy prices caused by the war in Iran. This development increases pressure for interest rate hikes from the European Central Bank.
According to data released today, consumer prices rose by 3.3% compared to last year, following a 2.5% increase in February. Analysts had predicted a 3.8% rise.
Spain’s statistical agency points out that the main cause of the increase is energy.
Spain is the first major economy in the eurozone to publish data on price trends, while the overall report for the region will be released on March 31. Last week, the European Central Bank revised its inflation forecast upward to 2.6% for this year, from the previously projected 1.9%, warning that the war in the Middle East may pose upside risks to inflation and downside risks to economic growth.
