The persistent rise in oil prices due to the Iran conflict and the closure of the Strait of Hormuz is already having a strong impact on prices. General inflation rose in August, reaching 4.3%, according to the preliminary CPI indicator from the National Statistics Institute, seven tenths higher than in July and the highest rate in the last three years, since February 2023. With the August data, inflation has increased for two consecutive months and is above 4% for the first time since April 2023.
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This behavior, explains the INE, is influenced by the prices of fuels and lubricants for personal vehicles, which are rising while they fell in August 2025; and also, though to a lesser extent, by food and non-alcoholic beverages, whose prices are decreasing less than in the same month last year.
The rise in general inflation does not yet extend to core inflation, which excludes energy and unprocessed food from its calculation. This rate falls by one tenth in August, to 2.9% year-on-year.
After three consecutive months, since March, with inflation remaining at 3.2%, in July, the CPI rose three tenths to 3.5%.
The Ministry of Economy, Trade and Business recalled, upon the publication of these data, that the measures of the Response Plan remain in effect according to the already announced schedule: the reduction of the Hydrocarbon Tax applicable to diesel rises to 20 cents per liter from September 1, while the gasoline reduction remains at 5 cents per liter. The rest of the measures continue active as planned in Royal Decree-Law 18/2026.
“The Government is monitoring minute by minute the impact of the conflict in Iran on the Spanish economy, together with social agents and the most affected sectors,” they stated.
In monthly terms (August over July), the CPI rose by 0.7%, four tenths more than in July and its largest monthly increase since last March. Considering only the months of August, this month’s rise is the highest in an August since 1992.
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With the increase recorded in the eighth month of the year, monthly inflation accumulates seven consecutive months of rises.
Meanwhile, the harmonized CPI (HICP) increased its year-on-year rate by six tenths in August, to 4.5%, with a monthly variation of 0.6%. The core HICP inflation is estimated at 3.2% for the eighth month of the year, according to Statistics.
The detail of the July CPI published by the INE in mid-month confirmed that the diesel subclass registered a year-on-year variation of 15.7% in July, above the 15% threshold set in the decree of measures to contain the impact of the war in Iran.
Upon exceeding that threshold, the safeguard clause of the Government’s Response Plan to the Middle East conflict is automatically activated. The reduction of the Hydrocarbon Tax applicable to diesel will rise to 20 cents per liter on September 1, compared to the 5 cents initially planned for that month.
Gasoline, whose subclass registered a year-on-year variation of 7.3% in July, below 15%, maintains the ordinary gradual withdrawal schedule, with a reduction of 5 cents per liter in September.
The rest of the measures remain active as planned in the same Royal Decree-Law, as recalled this Friday by the Ministry of Economy.
