The Bank of Spain (central bank) does not rule out the possibility that inflation in the country could reach almost 6% this year if the conflict over Iran continues. This is stated in a report published on the bank's website.
Thus, “the inflation rate for 2026 is revised upwards“ to 3%. “It should be noted that scenarios characterized by more prolonged disruptions in energy markets could lead to inflation rising to 5.9% and 3.2% in 2026 and 2027, respectively,“, the bank noted.
“The current forecast, subject to a particularly high degree of uncertainty as a result of the development of the conflict in the Middle East, includes a reduction in the projected GDP growth rate for 2026 by one-tenth of a percentage point, to 2.3%, compared to the scenario that existed before the attack on Iran“, the Central Bank added.
Earlier, the kingdom's National Institute of Statistics reported that annual inflation in Spain in March was 3.3%, compared to 2.3% in the previous month. This trend is largely due to rising fuel prices.
In July 2022, inflation in Spain reached 10.8%, the highest level since 1984.