Business · Economy · 4 hrs ago
Experts warn Spain’s inflation could become entrenched and weaken spending
Most experts surveyed expect Spain’s inflation to stay high for some time and become a lasting feature of the economy.
The price increases began with energy and fuel and have spread to food, services and other goods, amid conflict in the Middle East.
Energy, food and services are expected to keep pushing prices up, according to 63% of respondents.
Inflation reached 4.9% in September and October, while the eurozone average was 3.8%.
Prolonged price rises could reduce household buying power and spending, especially if wages grow more slowly than prices.
The European Central Bank raised interest rates to 2.5% in September, and 86% of respondents expect further increases by the end of the year.
Spain’s economic growth is forecast to slow, to 2.4% in 2026 and around 2% in 2027.
A majority of respondents to a PwC survey say Spain’s current price increases mark the start of a period of structurally higher inflation.
The survey found that 52% expect inflation to remain high for a time and say the European Central Bank will have difficulty resolving it through interest-rate changes.
Inflation has exceeded 4% for three consecutive months, reaching 4.9% in September and October, according to the article.
Respondents warn that sustained inflation could reduce household purchasing power and lead to lower consumption and saving.
The survey expects Spain’s economic growth to slow to 2.4% in 2026 and around 2% in 2027.
- Who
- More than 450 business owners, executives and analysts surveyed by PwC.
- What
- They warn that Spain’s inflation could become structurally higher and weaken household purchasing power and spending.
- When
- The findings are from PwC’s fourth-quarter economic and business survey, published on November 1, 2026.
- Where
- Spain.
- Why
- Respondents point to rising energy, food and services costs; the article also says domestic demand and tourism are pushing prices higher.
Respondents who see structurally higher inflation
Respondents who see temporary or manageable inflation
Inflation outlook
Respondents who see structurally higher inflation
52% say this is the start of a phase of structurally higher inflation that will last for a time and be difficult for the ECB to resolve.
Respondents who see temporary or manageable inflation
25% say the episode is temporary; 15% call it a manageable risk if the ECB acts firmly.
The war between the United States and Iran triggered the prolonged inflation scenario described in the article.
The ECB raised interest rates to 2.5%.
Spain’s inflation reached 4.9% in both months, after three consecutive months of increases above 4%.
Expansión published the findings of PwC’s fourth-quarter economic and business survey.
- Survey respondents
- More than 450 business owners, executives and analysts
- Structural inflation outlook
- 52% say the current price rise marks the start of structurally higher inflation
- Price pressures
- 63% expect energy, food and services to exert the greatest upward pressure
- Household impact
- 39% expect lost purchasing power and possible cuts to consumption and saving
- Interest rates
- ECB rate at 2.5% after a September increase
- Growth forecast
- 2.4% in 2026; around 2% in 2027
What people are saying
es el inicio de una fase de inflación estructuralmente más alta, que se mantendrá durante un tiempo y que el BCE tendrá dificultades en resolver
Una mezcla que podría hacer que la inflación sea persistente y difícil de reconducir