Prices continue to slow down in May despite the war in Iran
The cost of living grows a slight 0.1% between April and May in Spain
BarcelonaThe cost of living for families has maintained this May the slowdown recorded the previous month, despite the continuation of the war in Iran and instability in energy markets, according to provisional data advanced this Friday by the National Institute of Statistics (INE).
Thus, the consumer price index (CPI, the indicator that measures families' cost of living) grew in Spain by a slight 0.1% between April and May, three tenths below the rate recorded between April and March. In annual terms, the CPI in Spain stood at 3.2% above the levels of a year ago, the same variation as recorded last month.
The cost of transport and that of cultural, recreational and sports activities pushed inflation up, while clothing and footwear pushed it down. The rate of 3.2% continues to be much higher than the 2% that the European Central Bank aims for in the medium term for the euro area, but the fact that the monthly rise in prices is only 0.1% gives breathing room to family economies.
The government puffs out its chest
The Spanish government has boasted about low inflation in a context where international volatility resulting from the war in the Middle East foreshadowed a generalized increase in prices worldwide. "Inflation in May remains stable at 3.2% thanks to government measures and the renewable shield in a context of high volatility in energy prices due to the war in Iran," the Ministry of Economy assured in a statement sent to the media.
The Spanish government approved in March a package of fiscal measures to alleviate the rising cost of living in the face of the continuous increase in the price of oil, which had also driven up the cost of fuels and electricity, especially VAT reductions and special taxes. In the case of measures affecting electricity bills, they will cease to be in effect this Monday, June 1, but the rest will remain in force for at least one more month.
The price of oil skyrocketed with the outbreak of the armed conflict in the Middle East, when the United States and Israel attacked Iran on February 28, a war that has been escalating and has affected the energy infrastructure of most Persian Gulf countries, which are among the main exporters of crude oil and natural gas in the world. Likewise, the war has also led to the de facto closure of ship traffic through the strategic Strait of Hormuz, through which approximately one-fifth of the oil traded in the world circulated.
The increase in the price of oil and gas has a direct effect on consumers' pockets because it raises the cost of energy (fuels, electricity, gas) but at the same time drives up other prices, as companies' production and transport costs skyrocket, and these are ultimately passed on to the final prices of products, which are what consumers pay.
Pedro Sánchez's executive has also highlighted the significant role of renewables. "The firm commitment to renewable energies and energy sovereignty places Spain in a position of strength to face the volatility of energy markets," adds the ministry's statement, which highlights that this has helped to "keep electricity prices contained." In this regard, the Spanish government points out that electricity bills "even fell in April" compared to the same month in 2025.
Underlying inflation – the one that excludes the most volatile elements, such as energy or fresh food – has stood at 2.9% annually, one tenth higher than the previous month. The INE will publish the definitive figures for May on June 12, also broken down by autonomous communities.
