Spain's inflation accelerated more than expected, moving further away from the European Central Bank's 2% target and strengthening the case for the central bank to keep raising interest rates.
Data released on Tuesday showed consumer prices rose 5% year-on-year in September, up from 4.6% in August. This is the highest level since February 2023 and also above the median estimate of 4.9% from analysts surveyed by Bloomberg.
The statistics agency said sharp increases in fuel and package holiday prices were the main drivers. A measure of underlying price pressures also rose more than expected.
Affected by the Iran war, Europe faces a renewed rise in energy costs, but the region's economy has so far performed surprisingly well.
Spain is the first major eurozone member state to publish inflation data for the month, and other member states are expected to follow with accelerating inflation. Overall inflation for the 21-nation eurozone will be released on Friday, with economists estimating it reached a three-year high of 3.7%, almost twice the European Central Bank's target.
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