Bank of Spain raises 2026 inflation forecast to 3.9%
Bank of Spain revealed in its report on Friday that it expects average inflation to stand at 3.9% in 2026 and 3.7% in 2027, an increase of 0.3 and 1.1 percentage points, respectively, compared to its July forecast. It pointed to energy prices, up 22% year-on-year in September, as the main inflation driver, while noting that energy inflation would be almost 10 percentage points higher without the government's support measures.