The most expensive September: energy, back to school and mortgages impact family economies
The wars in Ukraine and the Middle East push prices up in a month of greater spending
BarcelonaSeptember 1st marks the start of the political, social, and educational year. One could also speak of a new school year for family economies that, in this 2026, looks tough, with a generalized price increase that directly impacts families' spending capacity, after a particularly expensive summer due mainly to the rise in energy costs.
The fact is that the war in Iran is directly affecting family economies, with two very clear aspects: energy is becoming more expensive due to high oil prices and, furthermore, general inflation, meaning the overall price of goods, is rising as it has not done in three and a half years. Fuels were the main cause of the inflation increase in August to 4.3% in Spain, but other products are also increasing in cost, especially food, heavily affected by the war in Ukraine, as this country and Russia are the world's main grain suppliers. The lack of wheat and other cereals is driving up the price of human food, but it also makes animal feed more expensive, meaning not only cereal-based foods are becoming more expensive, but also animal protein.
To this must also be added the increase in fertilizer costs, which also drives up the price of cereals and other agricultural products worldwide. This increase in fertilizer prices is mainly due to the closure of the Strait of Hormuz due to the United States' war against Iran.
A war that will also cause energy prices to rise. Although the price of a barrel of oil has not reached the highs seen in 2022 when the war in Ukraine broke out, it has remained high enough that, for example, in Spain, there have been eight consecutive weeks of rising prices for gasoline and diesel.
In fact, diesel, as of this Tuesday, is once again subsidized with 20 euro cents per liter. This is because, although the Spanish government decided to gradually withdraw fuel subsidies between July and September, as diesel increased by more than 15% in the seventh month of the year, the safeguard clause, which foresaw an increase in the subsidy, came into effect. Thus, as of this Tuesday, a liter of diesel is once again subsidized with 20 cents per liter, but in the case of gasoline, the opposite is happening: as it did not exceed a 15% increase, the subsidy is reduced to five cents per liter.
Electricity and mortgages
Another effect of the war in Iran is the increase in the price of natural gas. This has directly impacted the electricity bill for the month of August – and may continue into September – which has increased by an average of 19%. This happens because, even though photovoltaic generation is increasing, during hours when there is no sun, combined cycles come into operation, which have to pay more for gas. Along with this fact, demand, with heatwaves, has also increased and also becomes a factor that drives prices up.
But supplies are not the only thing getting more expensive. Due to the inflationary trend, the Euribor, to which most mortgages in Spain are referenced, closed August at close to 3%.This will make mortgages more expensive, especially variable ones –but also new ones at fixed rates–, and the trend may continue to rise if the ECB, at next week's meeting, decides to raise benchmark rates to curb inflation.
The last big impact is for families with children. The return to school it doesn't cost less than 500 euros per student, although with many differences depending on the community where they are located and, also, on the type of school the children attend. Private ones can triple the cost of public ones. When it comes to buying school supplies, it is necessary to compare the different offers from stores to find the cheapest place. Another tip is to avoid impulse purchases: there is absolutely necessary school material, but manufacturers and stores also try to increase the purchase ticket with tempting offers and products that dazzle the little ones, and that are not entirely necessary. A third element that can help families is to anticipate purchases and split payments, so that the impact is not so great.
