Azernews.Az

by Alimat Aliyeva

Producer prices in Spain fell by 3% in December compared to the same month last year, according to a report released Monday by the country’s National Statistics Institute (INE), Azernews reports, citing foreign media.

The decline was largely driven by energy prices, which dropped 10.8% year-on-year, pulling down the overall index. Excluding energy, however, the general producer price index actually increased by 0.8% compared to December 2024, signaling underlying price pressures in other sectors of the economy.

On a monthly basis, producer prices rose 0.4%, indicating a modest short-term increase amid the broader annual decline.

Analysts note that the drop in energy costs is helping ease inflationary pressures for businesses, but the continued rise in non-energy producer prices suggests that some sectors may still face higher production costs, which could eventually filter through to consumer prices. This contrast highlights the delicate balance Spain is navigating between falling energy costs and broader inflationary trends.