The Spanish economy maintained its high growth rate of recent years in the second quarter of 2026, above the European average. However, at the same time, the cost of living for families continues to rise, and this July will close at its highest levels since May 2024.

The cost of living in Spain remains high this June. The prices of goods and services consumed by families have accelerated their growth, mainly due to the end of tax reductions on electricity and gas that the Spanish government had approved last March and which expired from June 1st.

The debate is on the table as to whether fuel discounts will be extended until the end of September. We are talking about 21 cents per liter of gasoline and 29 cents per liter of diesel. This discount combines a reduction in VAT and another reduction in the hydrocarbon tax. With the current reduction, Spain is already at the lower limit of taxation allowed by the European Union. Why can the Government influence the price of fuel so much?According to the CNMC, approximately half of the price we pay corresponds to the costs and margins of the companies in the chain, while the other half consists of taxes: VAT and the hydrocarbon tax. In fact, gasoline bears a higher tax burden than diesel. The most striking thing is that VAT is calculated on the base price plus the hydrocarbon tax. In other words, we pay a tax on another tax. Therefore, any increase in price is immediately translated into more revenue for the State.As the holidays approach, the decision is more relevant than ever. An increase in fuel prices would drive up inflation in the coming months, which already stands at a worrying 3.2%. Let's not forget that energy is the raw material of all raw materials: when it becomes more expensive, it ends up making almost everything more expensive. Private car fuel consumption always rises during summer months. The price of fuel, moreover, conditions our perception of inflation. Few people consult the CPI every month, but everyone who drives knows how much it costs to fill the tank. When gasoline approached two euros per liter, it made headlines. Deep down, it's also a political climate decision. And, if not, there's always that joke that says no matter how much the price goes up, we can always put in 20 euros of gasoline.

The Strait of Hormuz continues to be the focus of global economic activity. Enagás CEO Arturo Gonzalo Aizpiri has stated that, if the peace agreement and the reopening of the Strait of Hormuz are confirmed, gas futures markets will not recover "full price normality" until "the end of next year or the beginning of 2028".

The rise in housing prices is not a problem exclusive to Barcelona and its metropolitan area. In Catalan municipalities with more than 5,000 inhabitants, the value of the built square meter has increased by almost 63% on average between 2015 and 2025. L'ARA has compiled a ranking of the municipalities where prices have risen the most in the last decade, based on sales data collected by the Generalitat.

Single-parent families with one child in their care will have a 50% reduction in public university fees from the next academic year. Families with a single adult and two or more children, or with a disability or work incapacity, will be able to access public university free of charge. The Government will approve this coming Tuesday, at the executive council, the decree setting university fees, which will already incorporate the new measure, a "historic" demand from this group that equates these family models to large families – who already benefited from these discounts –, according to the Department of Research and Universities.

The cost of living in Catalonia moderated last May despite the upward pressures of 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.

The increase in gasoline prices has led inflation in the United States to reach its highest level in three years. According to data published this Wednesday by the Department of Labor, prices in the US rose by 4.2% last May compared to the same month last year.

The 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).

The effects of the war in Iran continue to tighten the screws on the fruit and vegetable sector, which finds it increasingly difficult to contain the costs of fruit and vegetables. This Wednesday, companies in the sector - through a survey by the main association of manufacturers and distributors in the State (Aecoc) - have warned of the possibility of new price increases in the not-too-distant future if the conflict in the Middle East drags on.

The reduction in electricity and natural gas bills moderated the increase in the cost of living in April, both in Catalonia and in Spain as a whole. The measures approved by the Spanish government to reduce some taxes on electricity and gas had the desired effect, although, on the other hand, the cost of fuel continued to rise due to uncertainty in international energy markets because of the war in Iran.

Thousands of people participated this midday in the demonstration called by UGT and CCOO in Barcelona for Worker's Day, the central event of the day of protests in Catalonia. The Urban Guard put the participation in the protest at 2,500 people, while the organizers estimated there were between 10,000 and 15,000. Workers have mobilized spurred by international geopolitical instability and the electoral calendar in the State.

The fiscal measures to reduce the cost of electricity and fuels approved a month ago by the Spanish government have had a positive effect on the prices of goods and services consumed by families, which has allowed to moderate the inflation that had skyrocketed in March as a consequence of the energy crisis derived from the war in Iran.

The fiscal measures to reduce the cost of electricity and fuel approved a month ago by the Spanish government have had a positive effect on the prices of goods and services consumed by families, which has allowed to moderate the inflation that had soared in March as a consequence of the energy crisis derived from the war in Iran.

The major distribution companies in Spain have warned that private consumption shows "slight signs of exhaustion" caused by the war in Iran, at the annual meeting that the entity grouping them (Aecoc) held this Tuesday in Barcelona. Domestic consumption and investment have marked the good performance of the Spanish economy once the pandemic hecatomb was overcome. Now, the president of Aecoc, José María Bonmatí, has assured that "we are still in very positive ratios", but has warned that "the consumer confidence index is not particularly sky-high". "Crises begin and end when the consumer perceives it that way," he recalled.

The rise in fuel prices caused by the war in the Middle East sent the cost of living soaring in Catalonia and Spain in March, the first month with the war's effects, according to consumer price index (CPI, the indicator that measures the cost of living for families) data published this Tuesday by the National Statistics Institute (INE).

The war in Iran and the resulting increase in energy costs have impacted inflation in Spain. Thus, the cost of living for families this March has notably increased compared to February, as a result of the rise in prices of fuels and electricity.

The war in Iran and the resulting energy price increase have impacted inflation in Spain. Thus, the cost of living for families this March has become notably more expensive compared to February, as a result of the rise in prices of fuels and electricity.

The US and Israeli attacks on Iran are already impacting people's wallets. The situation will worsen the longer the conflict lasts and the longer it takes to resolve the closure of the Strait of Hormuz, through which a fifth of the world's oil and gas passes. "Nobody knows what will happen tomorrow, but we do know that the risk is very high," says Javier Díaz-Giménez, a professor at IESE Business School. The problem is that we are in a context of uncertainty and volatility, adds Pedro Aznar, an economics professor at ESADE Business School.

As the hours pass, more details are emerging about the measures the Spanish government is considering to address the energy crisis stemming from the war in the Middle East. While on Thursday, Economy Minister Carlos Cuerpo hinted at specific aid for the sectors hardest hit by rising fuel prices—agriculture and road transport, among others—on Friday, the Minister for Ecological Transition, Sara Aagesen, raised the possibility of reducing the government's VAT rate in 2021, when energy prices skyrocketed. "Yes, we are also considering this measure," Aagesen told the media on Friday morning. In 2025, the VAT on electricity returned to 21%, ending the tax reductions of recent years.