Inflation in Spain reached 4.3% in August, while salary increases remain at 3.04%. Over 343,000 companies have raised wages by 4.08%, affecting 2.7 million workers.
The inflationary pressure in Spain has led to an increase in salary negotiations, according to expansion.com. Although the average salary increase agreed in collective agreements stands at 3.04% until August, the CPI has climbed to 4.3%, making it difficult to preserve the purchasing power of workers.
The impact of the war in the Middle East and rising fuel costs have exacerbated this situation. A total of 343,271 companies have implemented salary increases of 4.08%, benefiting 2.72 million workers, although this is not enough to mitigate the effect of inflation.
Since March 2026, the CPI has outpaced salary increases for six consecutive months, marking a shift from the previous trend where salaries grew above inflation. The new agreements present an average revaluation of 3.7%, compared to 2.9% in older agreements.
The situation varies by province. The highest salary increases are recorded in Murcia at 5.86%, Guipúzcoa at 4.37%, and A Coruña at 4.3%. In contrast, Málaga, Navarra, and Zaragoza show the lowest increases, between 2.45% and 2.68%.
More than 70% of workers will experience a significant reduction in their purchasing power this year, even if inflation forecasts are met. The Bank of Spain estimates an average CPI of 3.6% for 2026, although projections have been revised downwards due to the recent price increases.
The European Central Bank (ECB) has also responded to the situation with an interest rate hike of 25 basis points, bringing the cost of money to 2.5%, the highest level since March of the previous year. This measure aims to control inflation, which affects both workers and company margins.
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