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Energy Prices · Geopolitics · Inflation · Spain
Spain's inflation rate accelerated to 3.3% in March, up from 2.5% in February, primarily driven by higher fuel and lubricant prices due to the U.S. and Israel's war with Iran, according to EU-harmonized figures from the country's statistics agency INE.
This surge in consumer prices reflects the impact of the energy shock, which is now affecting prices across the eurozone. This contrasts with earlier Euro area inflation expectations, which softened before the Iran war outbreak.
The European Central Bank’s Consumer Expectations Survey for February 2026, conducted largely before February 28, showed median 12-month inflation expectations falling to 2.5% from 2.6% in January. Three-year expectations also decreased to 2.5%, while five-year expectations remained at 2.3%.
Lower-income respondents consistently reported higher inflation perceptions and short-term expectations compared to higher-income groups. Economic growth expectations for the next 12 months improved to -0.9% from -1.1%, and expected unemployment rates declined to 10.8% from 11.0%.
Home price growth expectations eased slightly, and mortgage interest rate expectations held steady at 4.7%. The survey included 19,000 consumers from 11 euro area countries.
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