Spain Feb. core CPI rises 0.4% m/m
TL;DR
Spain's core CPI rose 0.4% month-over-month in February 2026, accelerating from January and reaching 2.9% year-over-year, above the ECB's 2% target. The increase was driven by services and non-energy goods, with energy prices declining, and it signals sustained monetary policy tightness and cautious rate cut expectations.
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Spain’s core consumer price index (CPI) increased by 0.4% month-over-month in February 2026, reflecting persistent inflationary pressures in the economy. This follows a 0.3% rise in January, indicating a gradual acceleration in price trends [1]. On an annual basis, core CPI stood at 2.9% year-over-year, up from 2.6% in January, signaling a continued divergence from the European Central Bank’s (ECB) 2.0% target [2].
The increase was driven by rising prices in services (0.5% m/m) and non-energy goods (0.3% m/m), with housing, transport, and food costs contributing to the upward momentum [3]. Energy prices, however, declined 1.2% year-over-year, providing a partial offset to broader inflationary trends [4]. The Bank of Spain noted that core inflation remains anchored to broader Eurozone dynamics but emphasized that domestic demand and wage growth are key near-term risks [5].
For investors, the data underscores the likelihood of sustained monetary policy tightness, with the ECB maintaining its current policy rate of 4.0% until Q2 2026, according to recent projections [6]. While the annual core CPI remains below the Eurozone average of 3.1%, policymakers remain cautious about second-round effects, such as wage-price spirals, which could prolong inflation above target [7].
The latest figures will likely reinforce calls for a data-dependent approach to rate cuts, with markets pricing in a potential reduction in policy rates by late Q3 2026, contingent on inflation moderation [8].
