Prior +3.6%HICP +4.5% vs +4.6% y/y expectedPrior +3.9%Core CPI Y/Y +2.9% vs +3.0% priorSpain's annual inflation rate accelerated sharply in August, with rising fuel costs pushing headline inflation to its highest level in more than a year. The main factor behind the acceleration was the fuel and lubricants component, where prices increased compared with declines recorded in August 2025. The comparison with last year's weakness in energy prices generated a significant upward base effect, making fuel costs the largest contributor to the rise in headline inflation.Food and non-alcoholic beverages also added to inflationary pressures. Although prices in this category declined during the month, the decrease was smaller than that seen in the same period last year, resulting in a higher y/y contribution to the overall CPI.Despite the sharp increase in the headline measure, underlying inflationary pressures eased slightly. Core inflation, which food and energy prices, is estimated to have slowed to 2.9% from 3.0% in July.The divergence between the headline and core measures was largely driven by energy-related factors rather than a broad-based acceleration in domestic price pressures. This article was written by Giuseppe Dellamotta at investinglive.com.