In February, Spain's inflation rate remained stable at 2.3% year-on-year, the same level recorded in January. This stability follows a downward trend in consumer prices over the past four months, which decreased from a peak of 3.1% in October to the current rate. Meanwhile, the core inflation, which excludes the prices of fresh foods and energy products due to their volatility, slightly increased by 0.1 percentage points to 2.7%. These figures were provided by the National Statistics Institute (INE).

The decline in overall inflation has been significantly influenced by electricity prices, which experienced a notable rise of 3.7% in January compared to an alarming 20.5% increase from the previous year. Despite ongoing electricity price hikes driven by precautionary measures implemented after the blackout on April 28, the impact of energy costs on inflation has been mitigated, resulting in a stabilization of consumer price indices.

In February, the balance of inflation remained largely owed to the decrease in electricity prices, which counterbalanced increases in the costs of fuel, food services, and other goods. This dynamic highlights the intricate relationship between energy prices and overall inflation rates in Spain, especially as the government grapples with the challenges of ensuring fair electricity pricing amidst rising living costs. The implications of these inflation figures will be closely monitored by policymakers as they seek to maintain economic stability in the country.