Spain's Yearly Inflation Rate Rises to 4.3% in August, Reaching Highest Level Since February 2023

⑴ Spain's preliminary annual inflation rate for August rose to 4.3% from 3.6% in July, slightly above the market expectation of 4.2%, marking the highest level since February 2023. This increase was mainly driven by the escalation of tensions between the US and Iran, which pushed up crude oil prices and led to a sharp rise in energy prices. ⑵ The EU harmonized annual inflation rate rose to 4.5%, the highest since the beginning of 2023 and more than double the European Central Bank’s 2% medium-term target. The core inflation rate, which excludes volatile items such as unprocessed food and energy, edged down slightly from 2.9% in July to 2.8%.