The inflation rate has experienced a deceleration of three-tenths in August, according to the National Institute of Statistics (INE), standing at 2.6% annually in Aragon.
In Spain, it remained at 2.7% for the second consecutive month.
The main factors were: a decrease in the price of less intense fuels, food and non-alcoholic beverage prices dropped more than last year, and electricity prices increased less than in August of the previous year.
The prices of Brent crude oil averaged $67.9 per barrel in August 2025, down 4.4% from July and 15.5% less than a year prior.
In the eurozone, the inflation rate in August was 2.1% annually.
Core inflation moderated by one-tenth in Aragon, settling at 2.3% annually in August.
I will delve into the details by consumption groups and provinces. Housing showed the largest increase at 7.1% annually, while Hotels, cafés, and restaurants reached 4.7%. At the provincial level, Huesca recorded 2.6%, Teruel 2.1%, and Zaragoza 2.7%. The European Central Bank kept interest rates stable during its meeting in September 2025.
Behavior of General Inflation
Aragon’s inflation reached 2.6% annually in August, down from 2.9% the previous month. Across Spain, the rate remained at 2.7% for the second consecutive month. The main factors explaining this development were the less intense decrease in fuel prices compared to August 2024, the greater drop in food and non-alcoholic beverage prices compared to the previous year, and the smaller increase in electricity prices.
The price of Brent crude averaged $67.9 per barrel in August 2025, reflecting a decline of 4.4% from July and 15.5% year-on-year. Natural gas TTF averaged €32.7 per MWh, decreasing by 3.7% monthly and 14.7% annually.
Core Inflation and European Comparison
Aragon’s core inflation, which excludes unprocessed food and energy products, moderated by one-tenth to 2.3% annually. In contrast, Spanish core inflation accelerated by one-tenth to 2.4% annually. In the eurozone, the general rate was 2.1% annually, while core inflation reached 2.3%, creating an unfavorable differential of five-tenths for Aragon.
Sectoral and Territorial Analysis
By consumption groups, Housing led the increases with 7.1% annually due to electricity prices. It was followed by Hotels, cafés, and restaurants (4.7%), Alcoholic beverages and tobacco (4.0%), Education (3.4%), and Other goods and services (2.8%). The only prices that decreased were in Clothing and footwear, which fell by 1.5% annually.
By Aragonese provinces, Zaragoza recorded the highest rate at 2.7% annually, followed by Huesca at 2.6% and Teruel at 2.1%.
BCE Monetary Policy
The Governing Council of the European Central Bank kept official interest rates unchanged at its meeting on September 11, 2025. The deposit facility remains at 2.00%, the main refinancing operations rate at 2.15%, and the marginal lending facility at 2.40%. The ECB considers that inflation in the eurozone is in line with its target and has decided to extend the pause in rates, although it continues to monitor risks.
