Spain’s annual inflation rate rose to 4.3% in August 2026 from 3.6% in July, confirming preliminary estimates. It marked the highest inflation rate since February 2023, driven by rising transport costs (9.5% vs. 6.2% in July), particularly diesel (30.3% vs 15.7%) and petrol (16.9% vs 7.3%), amid supply disruptions linked to the ongoing conflict in the Middle East. Housing and utilities (6.4% vs 5.7%) and food and non-alcoholic beverages (2.3% vs 1.6%) also recorded faster price increases. On a monthly basis, the CPI rose by 0.7%, following a 0.3% increase in the previous month. The EU-harmonized inflation rate was revised slightly higher to 4.6% from an initial estimate of 4.5%, up from 3.9% in July. This was also the highest level since February 2023 and more than double the European Central Bank’s 2% medium-term target. Meanwhile, core inflation, which excludes volatile components such as unprocessed food and energy, edged down to 2.9% in August from 3.0% last month.