Key Takeaways

• Fastest pace in 2.5 years: Spain’s industrial price index rose 10.5% year-on-year in May — the steepest increase since December 2022.
• Accelerating from April: The prior month’s reading was revised up to 8.5% from an initial 8.3%.
• Energy the primary driver: A 28.2% surge in energy costs — led by higher prices for electric power generation, transmission, and distribution — drove the bulk of the increase.
• Consumer inflation risk: Companies typically pass industrial price increases on to customers, ultimately feeding through to broader inflation.
• ECB implications: The data adds to the case for the European Central Bank to maintain its restrictive policy stance, having already hiked rates earlier this month.

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Spanish industrial prices rose in May at their fastest pace since December 2022, fuelled by a considerable increase in energy prices, the National Statistics Institute (INE) said on Thursday.

The 10.5% year-on-year rise followed a revised 8.5% increase in the 12 months through April — itself revised up from an initial 8.3% reading.

The surge was driven by a 28.2% increase in energy costs, mainly due to higher prices for electric power generation, transmission, and distribution.

Companies tend to pass on industrial price rises to customers — ultimately feeding through to broader consumer inflation.