Fuel costs push Spanish inflation to 21-month high

Spanish inflation jumped to a 21-month high of 3.4 percent in March as the Middle East war caused fuel prices to spike, revised data showed on Tuesday.

Transport costs increased 5.3 percent year-on-year due to higher prices for fuel and lubricants for personal vehicles, statistics office INE said in a statement, revising upwards a preliminary March inflation estimate of 3.3 percent.

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Housing, clothing and footwear prices also contributed to the figure, the highest since June 2024 when inflation also hit 3.4 percent.

Iran closed the Strait of Hormuz, a commercially critical waterway for oil, gas and fertilisers, after US-Israeli strikes triggered the war on February 28, unleashing turmoil for global energy markets.

Spain’s leftist government put in place measures worth five billion euros ($5.9 billion) to cushion the blow on households and businesses, including tax cuts and a direct subsidy for the hardest-hit sectors.