BBVA Research has issued a warning that inflation in Spain is expected to rise to 2.9% in 2026, influenced by rising oil and gas prices resulting from the conflict in Iran. This figure is two-tenths higher than the average inflation rate projected for 2025. Despite this increase in inflation forecasts, BBVA maintains its GDP growth estimate for the year at 2.4%, emphasizing that this projection would have likely been higher without the adverse effects of the ongoing conflict. In its assessment, BBVA predicts that inflation could reach 3.5% by March if current trends continue, highlighting that the main contributors to this rise are the increasing prices of gasoline and diesel. In particular, the forecast suggests that inflation might spike to around 4% during April and May due to persistent fuel price increases. Although electricity prices have remained stable, the overall impact of rising fuel costs is expected to be significant, prompting adjustments in economic forecasts. BBVA's outlook incorporates a scenario where fuel price increases are anticipated to be temporary. They project that the price of oil will stabilize at about 75 dollars per barrel in the second quarter. However, if prices stabilize at higher levels, the inflation impact could be more severe, adding further complexity to the economic landscape in Spain and necessitating close monitoring of the situation as it evolves.