Spain’s inflation rate accelerated to 4.3% year on year in August 2026, up from 3.6% in July and slightly above market expectations of 4.2%, according to a preliminary estimate. It was the highest inflation rate since February 2023, driven largely by rising energy prices following an escalation in US-Iran tensions that pushed crude oil prices higher. The EU-harmonized inflation rate also climbed to 4.5%, its highest level since early 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.