FX.co ★ Spain Producer Inflation at 2-Year High

Producer prices in Spain experienced a significant rise of 6.6% year-on-year in February 2025, the most substantial increase since February 2023. This acceleration follows a 2.6% increase recorded in January. The primary catalyst for this surge was the escalation in energy prices, which soared by 22.2%, markedly higher than the 8.4% increase in the previous month. This was largely attributed to the heightened costs associated with the production, transportation, and distribution of electricity and gas, as well as the pipeline distribution of gaseous fuels. When energy costs are excluded, industrial prices remained unchanged, following a slight decline of 0.2% in January. The prices for durable goods saw a modest rise, increasing by 0.7% from 0.6% in January, and intermediate goods witnessed an increase of 0.6%, up from 0.1%, with notable price hikes in animal feed production. Conversely, the price growth for equipment decelerated to 1.4% from 1.5%, while prices for non-durable goods continued their decline by 1.4%, consistent with the previous month. On a monthly basis, Spain observed a 1.2% increase in producer prices, predominantly fueled by a 5.7% rise in the production, transmission, and distribution of electric power.