The unexpected decrease in inflation surprised analysts, who had predicted a rate of 2.6%.

In March 2025, Spain's inflation rate decreased to 2.3%, marking the lowest level since October 2024.

Additionally, cheaper fuels and motor oil contributed to the overall decline in inflation during March.

This rate was significantly lower than the anticipated 2.6%, indicating a notable decline since it reached 1.8% in October 2024.

The 12-month EU-harmonised inflation rate fell from 2.9% in February to 2.2% in March, according to the National Statistics Institute (INE).

The drop in inflation can be largely attributed to lower electricity prices, which were driven by increased hydropower output due to heavy rains.

This month's slowdown in inflation contrasts sharply with a six-month period of rising inflation from September 2024 to February 2025.

The overall Consumer Price Index (CPI) showed a month-on-month variation of just 0.1% in March.

Year-on-year, the overall CPI changed by 2.3%, while the underlying inflation rate recorded a variation of 2%.

Core inflation, which excludes fresh food and energy prices, was recorded at 2.0%, the lowest since November 2021.

Despite the overall decline, underlying inflation, which excludes energy and food, increased by 0.4% during the same period.

These developments reflect broader trends in the euro area, where inflation dynamics continue to evolve.