Catalina Espinosa
Research expert covering society, economy, and politics for Europe and the EU
Inflation in Spain - Statistics & Facts
Inflation is defined as a general increase in the prices of goods and services over a period of time, and implies the decline of purchasing power of a given currency. Yet, inflation is not necessarily a negative process; the European Central Bank aims at keeping inflation below, but close to, two percent. Whereas high inflation rates are a signal of an overheated economy and pose many risks, most economists agree that the impact of small levels of inflation is outweighed by the risk of deflation, that is, a negative interest rate. Nonetheless, the estimated global inflation rate in 2024 was over 5.67 percent, while the Spanish rate was lower at 2.87 percent during the same period and is expected to stay under four percent in 2025.
