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Spanish inflation climbs to 4.3% in August as fuel prices surge amid Iran‑war energy shock

Executive summary: Spain's consumer price index rose to 4.3% year‑on‑year in August, up from previous months, mainly because of higher gasoline and diesel prices linked to the ongoing energy shock from the Iran war. The increase reduces household purchasing power, raises cost pressures for businesses, and may influence the European Central Bank's monetary policy stance.

Who is involved: Spain's National Statistics Institute (INE), fuel retailers, consumers, and the Spanish government.

Likely next: Authorities may consider temporary fuel tax relief or subsidies, while markets will watch OPEC+ output decisions and ECB guidance for possible rate adjustments.

Spain's consumer price index reached 4.3% year‑on‑year in August, driven mainly by higher gasoline and diesel costs linked to the persistent energy shock from the Iran war. Core inflation eased slightly to 2.9%, indicating that the headline rise is largely energy‑related. The figure, reported by both Expansion and El  País, suggests renewed price pressures that could influence monetary policy and household budgets.

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