Spain’s inflation rate drops for first time in 10 months

Spain’s Consumer Price Index (IPC) – the inflation rate – stood at 6% in January in annual terms. This figure has dropped from the 6.5% registered in December and is the first decline in 10 months.

This is attributed to lower electricity prices in January 2022, as data published on Monday by Spain's National Statistics Institute (INE) would suggest.

In January 2021, electricity prices increased significantly, causing the inflation rate to skyrocket.

Storm Filomena pushed electricity prices

In Catalonia, official data published on January 12, 2021 showed that the first days of 2021 were the coldest fortnight since 2012. 

The storm brought snow and travel disruption at the beginning of the year throughout all of Catalonia. 

At the time, the electricity bills increased by 26.7% in the first days of 2021 compared to the same period of 2020, according to the latest analysis by consumers' rights association Facua, published on January 12, 2021. On average, taking into account the prices at the time, the average monthly bill was €86.50, significantly more than the €68.30 recorded at the beginning of 2020.