The annual inflation rate in Spain steadied at 4.9% in October 2026, the same as in September and in line with market expectations, according to preliminary estimates. Nevertheless, inflation remains at levels last seen in early 2023, driven by the effects of the war in the Middle East. The largest upward pressure come from prices for package holidays which are falling less sharply than in October last year. Gas prices are also rising more sharply than a year ago, while liquid fuels are increasing in price, compared with a decline in the same month last year. In contrast, prices of fuels and lubricants for personal transport are falling more sharply than in October 2025 and to a lesser extent, food and non-alcoholic beverages and clothing also exert downward pressure, as their prices are rising at a slower pace than in October 2025. Compared to the previous month, the CPI rose 0.6%