Spain's November 2025 Inflation Shows Slight Dip Amid Persistent Price Pressures

The National Statistics Institute (INE) reported Spain's annual inflation rate for November 2025 at 3.0%, marking a slight decrease from October's figures but highlighting ongoing economic pressure. Underlying inflation, which excludes volatile sectors such as unprocessed food and energy, rose by one-tenth to 2.6%, signaling persistent structural price increases.

Electricity prices in November notably decreased compared to a rise the previous year, partially contributing to the moderation in headline inflation. Consumer prices overall edged up by 0.2% from October to November. Meanwhile, the Harmonized Consumer Price Index (IPCA), used as a benchmark by the European Commission, showed an annual rate of 3.1%, a minor decline from the previous month, with no monthly change.

Sector behaviors showed mixed trends: Leisure and Culture prices decreased but less sharply than last year, whereas Food and Non-Alcoholic Beverages saw price increases relative to the prior year. This complexity illustrates the stubborn inflation pressure despite the modest overall retreat.

As Spain approaches the holiday season, some volatility is expected due to increased spending in commerce, hospitality, and leisure sectors. Recognizing these economic challenges, CEOE Tenerife commended local entrepreneurs for their resilience in sustaining business activity and employment amid rising costs. They also emphasized the importance of investment, innovation, and modernization to boost competitiveness and foster new growth opportunities in the islands' economy.

These November figures demonstrate that while headline inflation shows minimal easing, underlying inflation dynamics remain robust, maintaining upward pressure on prices. This nuanced picture suggests that Spain’s economy is navigating complex inflationary forces ahead of the important Christmas campaign period.