Fuels raised inflation to 4.3% in August, the highest rate since 2023

Prices in Spain rose 4.3% in Augustcompared to thesame month in 2025, driven by higher fuel prices, seven tenths higher than in July (3.6%), bringing inflation to its highest level since February 2023 .

On Friday, the National Institute of Statistics (INE) published the progress of this month's consumer price index (CPI), marked by the rise in fuel and lubricant prices for vehicles, products whose prices fell in August 2025.

The food and non-alcoholic beverage group has also been affected, albeit to a lesser extent, and in August these prices have fallen less than in the same month last year, although the INE will not publish detailed information until September 15.

The August progress figure shows an acceleration in inflation, which also rose four-tenths in July, to 3.6%, driven by the risein energy products, both because of the persistence of the conflict in the Middle East and because of the start of the withdrawal of fiscal support measures.

According to the Ministry of the Economy, behind theAugust price hike is the increase in fuel prices caused by the conflict in the Middle East.

The Spanish Government has also stated that the impact of the Iranian conflict on the Spanish economy continues "minuteby minute ", together with the social partners and sectors affected, and has recalled that the aid measures provided for in the Response Plan remain in force.

Diesel discount 

In August, the fuel cutwas 10 cents per litre in the hydrocarbon tax, slightly less than 15 cents per litre in July, as envisaged in the Conflict Response Plan.

This process of phasing out protective measures was to continue in September, with a discount of 5 cents per litre, until its total disappearance on 1 October, sincethe current decree only regulates tax aid  until the end of September.

Safeguard clause

However, the sharp increase in the price of diesel in July activated the safeguard clause , so from 1 September the drop in the hydrocarbon tax for this product will be 20 cents per litre instead of the 5 cents planned for that month.

Under this clause, if the price of any fuel increased by more than 15% in June, its discount would rise to 20 cents per litre in August, and if it rose in July, the discount would apply in September.

This has been the case for diesel(which rose 15.7% in July), but not for petrol(7.3% in that month), so in September it will have a discount of 5 cents, as planned.

The decree does not provide for the activation of the clause containing the inflation data for August, since the details will not be known until 15 September and the plan only covers them until the end of that month.

As far as electricity and gas are concerned, 21% general VAT will continue, as prices did not exceed 15% in July to apply a reduced 10% VAT.