Inflation in Spain stayed high in February, fuelled by energy base effects and a strong economy. 

Preliminary data released on Thursday showed that consumer prices rose by 2.9% compared to the previous year, consistent with January's figure and in line with the expectations of Bloomberg analysts.

Meanwhile, the measure of core inflation, which excludes energy and certain food prices, eased to 2.1%.

Despite a bumpy path, inflation in the eurozone appears to be on track to return to 2% this year. 

This trend is enabling the European Central Bank to continue cutting interest rates, which is positive news for the continent's struggling economy. 

The next rate cut is expected in a week, likely bringing the deposit rate down to 2.5%. 

Spain's data provides an early glimpse of price trends for February from the eurozone’s largest economies ahead of figures from Germany, France, and Italy, followed by the euro area’s overall data on Monday.

While some European Central Bank officials are still wary of persistent upward price pressures, especially in the services sector, others are concerned that Europe's slow economic growth could pull inflation below the target, Bloomberg reports.

However, Spain has not faced these challenges, as its growth has outpaced much of the region in recent years, driven by a surge in tourism, increasing exports, and strong domestic demand. 

In 2024, Spain's gross domestic product grew by 3.2%, contributing to higher wages and a decrease in unemployment.

Analysts had predicted the rise in Spanish inflation, which began toward the end of last year. They expect it to decline in the coming months as base effects gradually fade.