As happens at the turn of every new year, a wide range of everyday products and services rise in price, with energy, transport, fuel, telecoms and food once again among the most affected.
Early-year price increases are typically driven by higher demand, rising business costs and inflationary pressure, which tends to push the cost of living up at the start of each year.
According to a new report by Grant Thornton, 56% of mid-sized Spanish companies plan to raise prices in 2026, largely in response to higher energy and raw material costs.
The consultancy warns that price-rise expectations among Spanish firms have now reached a historic high, after jumping seven points between the second and third quarters of 2025. Spain’s figure is higher than both the EU average (50%) and the global average (53%).
Inflation slows but prices still rise
Inflation in 2026 is expected to be lower than in 2025, when Spain closes the year with an annual CPI of 3%. Forecasts from Funcas suggest average inflation will fall to 2.1% in 2026, meaning prices should rise more slowly overall.
With inflation easing, wage growth becomes the key factor determining household purchasing power. Current projections suggest salaries will once again outpace inflation, as they have done since 2024.
Spanish companies expect to raise wages by an average of 3.5%, while recruitment firm Randstad predicts increases of up to 5% in some sectors.
Pensioners will also see gains, as state pensions are set to rise by 2.7% in 2026, according to the government.
That said, some prices will grow faster than wages, others more slowly, and a few may even fall, particularly gas and petrol, according to current forecasts.
Below is a breakdown of what Spaniards can expect in 2026.
What is already getting more expensive
Tobacco
Cigarettes and rolling tobacco rose in price in December, after the Official State Gazette (BOE) confirmed increases for several brands. The hikes are described as significant.
Phone, internet and TV bills
Spain’s three largest telecoms providers have confirmed price rises for 2026:
- Movistar: +4%
- Orange: +3.8%
- Vodafone: +3.9%
Transport: a mixed picture
Toll roads
The government has capped toll increases at 2% per year between 2026 and 2032 for motorways now managed by the state following failed concessions.
Public transport
State aid for urban and intercity public transport has been extended throughout 2026. This includes:
- A €60 nationwide monthly pass (€30 for under-26s)
- Free travel for children
- 50% discounts for young people
- 20% discounts on standard season tickets
Whether regional and local transport fares rise will depend on decisions taken by autonomous communities and city councils later in the year.
Air travel
Flying is expected to become more expensive. Airport operator Aena has approved a 6.5% rise in regulated airport charges, equivalent to €0.68 per passenger, bringing the fee to €11.03.
Airlines have already warned that this cost will be passed on to passengers from March 2026.
Energy bills: higher charges, lower electricity prices?
Regulated electricity costs are set to rise by 4.1%, according to Organización de Consumidores y Usuarios (OCU). Funding for the social electricity tariff will also increase by 50%, and there is uncertainty over whether additional grid-security costs could end up on household bills.
However, wholesale electricity prices are expected to fall. Futures markets suggest average household electricity prices in 2026 could drop to €56.77 per megawatt hour, compared with €64.39 over Christmas 2025.
Water and post
Water bills are rising in many cities:
- Barcelona: +2.9%
- Madrid region: +3% annually until 2030
- Bilbao area: +4%
Correos has confirmed stamp price increases of 7.87% for standard domestic letters, and a 5.49% rise for lightweight parcels, well above expected inflation.
Food: still under pressure
Food prices rose sharply in 2025, increasing by 10.3% on average.
The steepest rises were seen in:
- Eggs (+30.2%)
- Beef (+18%)
- Coffee (+17.3%)
- Chocolate (+14.5%)
While forecasts for 2026 remain uncertain, recent Christmas price spikes suggest the shopping basket will continue to get more expensive.
Housing: the biggest pressure point
If one trend is certain, it is housing. Prices for both buying and renting are expected to rise again in 2026.
According to figures from Tinsa, Spain’s average property price closed 2025 at €2,091 per square metre, up 13.1% year-on-year (10% in real terms). No major institution expects prices to fall – the only question is how fast they will rise.
Renting
More than 632,000 rental contracts expire in 2026. Government data suggests that renewing an average 80m2 flat could push rent from €864 to €1,160 per month – a 23% increase, or €2,352 more per year. Property portals forecast average rental rises of around 7% nationwide.
Buying and mortgages
House prices are expected to rise by around 10%, while mortgage rates are already climbing. After months of competition between banks, average mortgage rates reached 2.807% in October and are expected to approach – or exceed – 3% in 2026.
