Fuels continue to put pressure on the cost of living, but in Catalonia it moderates in May

BarcelonaThe cost of living in Catalonia moderated last May despite the upward pressures on fuel costs on family economies caused by the energy crisis derived from the war in Iran. Nevertheless, the measures approved by the Spanish government to cut taxes on electricity and natural gas curbed price increases.

In Catalonia, prices in May rose by an average of 0.2% compared to the previous April, two tenths less than the increase recorded between April and March, according to data from the consumer price index (CPI, the indicator that measures the evolution of the cost of living) published this Friday by the National Statistics Institute (INE). Compared to May 2025, the CPI increase in Catalonia was 3.1%.

On a Spanish level, the INE has confirmed the annual rate of 3.2% which it had already advanced two weeks ago. Between April and May, the CPI increase was 0.1%.

With these figures, inflation, both in Catalonia and in the State as a whole, remains far from the annual rate of 2% that the European Central Bank (ECB) sets as a medium and long-term objective for the countries of the euro area. In fact, in the 21 countries that share the common currency, the CPI in May also closed at 3.2%, as in Spain. This led the ECB to announce on Thursday an increase of 0.25 percentage points, to 2.25%, in key interest rates in the eurozone, a usual measure by central banks to try to curb price increases.

Regarding core inflation – which does not include the most volatile elements, such as energy or fresh food – in Spain it rose to 3% annually and for the third consecutive month it was below the general CPI.

Fuel and hospitality, the biggest increases

The war in the Persian Gulf initiated in late February by the United States and Israel against Iran continues to be the main source of price increases, a consequence of the rise in the price of oil and natural gas. The conflict has affected oil facilities throughout the region and has blocked trade passing through the Strait of Hormuz, which was closed by Iranian forces in response to American attacks. Before the hostilities began, a fifth of the world's exported oil circulated through this maritime passage, which is why its closure has caused greater scarcity of crude oil globally and the consequent price increase.

Thus, the increase in the price of oil and gas has affected all energy products. In response, the Spanish government approved a package of measures to alleviate the impact of the price increase on families' pockets, which included tax reductions and fiscal bonuses on electricity and gas bills, as well as on fuels. The effect has been noticeable, as in Catalonia, gas and electricity bills fell by 3% in May compared to the same month last year and by 0.8% compared to April.

However, it should be taken into account that some of these measures – especially those affecting electricity – ceased to be in effect on June 1st, so an increase in inflation can be expected when the INE publishes the CPI data for this month on the 29th.

Despite the executive's policies, however, fuels "continue to put upward pressure due to the persistence" of the conflict, the Ministry of Economy indicated in a statement sent to the media, in which it also assures that these products increased in price by 15.8% in May, but that without the government's package of measures, the increase would have been double.

Hospitality rises and clothing falls

Besides energy, restaurants and hospitality were also among the sectors where prices rose the most, coinciding with the arrival of good weather, when there is an increase in demand and the arrival of foreign tourists grows. Between April and May, the prices of these services rose by 1.2% to stand 5% above the levels of a year ago.

At the other extreme, clothing and footwear were the items that most reduced the cost of living, with a decrease of 0.1% in both cases compared to the previous month. The price of clothing is 1.4% below the levels of May 2025.