Spain's inflation steady at 3.2% in May as core pressures build to 3%

National snapshot

Spain's headline inflation stayed at 3.2% year-on-year in May, unchanged from April, marking the third consecutive month above the 3% threshold. The harmonised index (HICP) stood at 3.6%, four tenths above the eurozone average, according to the Unión Sindical Obrera (USO). Core inflation, which strips out energy and fresh food, rose two tenths to 3%, suggesting that underlying price pressures are building.

“This more structural inflation has condemned households to a continued loss of purchasing power relative to wage increases.”

Regional divide

Inflation varied sharply across communities. Madrid posted the highest annual rate at 3.8%, followed by Cantabria (3.7%) and Galicia (3.5%). Several regions, including Canarias and the Valencian Community, matched the national average of 3.2%. At the bottom, Extremadura recorded 2.5%, with La Rioja, Murcia and Asturias all at 2.9%. The monthly change in the annual rate showed the biggest increases in Melilla (+0.5 pp), Cantabria (+0.4 pp) and the Balearics (+0.3 pp), while Ceuta, Extremadura and Andalusia saw their 12-month figures edge down by 0.2 points each.

Madrid3.8%

Cantabria3.7%

Galicia3.5%

Baleares3.4%

Castilla-La Mancha3.3%

Canarias3.2%

Comunitat Valenciana3.2%

Cataluña3.1%

Aragón3.1%

Andalucía3%

Asturias2.9%

Murcia2.9%

La Rioja2.9%

Extremadura2.5%

Madrid

3.8 %

Cantabria

3.7 %

Galicia

3.5 %

Baleares

3.4 %

Castilla-La Mancha

3.3 %

Canarias

3.2 %

Comunitat Valenciana

3.2 %

Cataluña

3.1 %

Aragón

3.1 %

Andalucía

3 %

Asturias

2.9 %

Murcia

2.9 %

La Rioja

2.9 %

Extremadura

2.5 %

Data from the article text

What drove prices up

Transport remained the dominant cost driver, with a national year-on-year rise of 7.4%. Air passenger fares climbed particularly sharply, feeding through to a 9.6% annual leap in Canarias, where the economy relies heavily on aviation. Restaurants and accommodation services were another major pressure point, up 5.2% nationally and by as much as 5.5% in Asturias. Insurance and financial services also pushed higher, rising around 4.5% in several regions. Food and non-alcoholic beverages advanced a more modest 2.2%.

Energy and the Iran war

Energy prices themselves remained subdued, with electricity, gas and other fuels down 5.8% year-on-year in parts of the country, acting as a brake on overall inflation. However, the broader impact of the war in Iran was felt through transport costs, as global crude and gas markets remained volatile. The National Statistics Institute (INE) explicitly linked the rise in transport and international tourism packages to the conflict's effect on energy prices. Canarias, acutely dependent on air and sea links, saw the transport group spike to +9.6%, highlighting the outsized impact on island regions.

Wage concerns

The USO union called for automatic wage increases tied to an index that reflects only the most basic consumption basket – food, housing and transport – rather than the general CPI. Secretary General Joaquín Pérez argued that Spain had for too long allowed others to manufacture for it, and that domestic research and production were essential to controlling prices and improving job quality.

“We want to bring back automatic cost-of-living adjustments in collective agreements, but with a new index that covers only the basic basket: food, housing and transport.”