The Catalonia inflation rate moderated significantly in January 2026, offering welcome relief to consumers. Meanwhile, the Valencian Country and Balearic Islands also experienced notable declines.
According to data released today by the National Statistics Institute (INE), the Consumer Price Index (CPI) showed a clear downward trend across eastern regions. However, specific service sectors, particularly insurance and hospitality, continued to see price hikes.
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Catalonia inflation rate reaches 2%
In Catalonia, the annual inflation rate fell to 2.0% in January. This represented a decrease of half a percentage point from December’s 2.5%. Therefore, the headline figure now aligns with general European targets for price stability.
Despite the overall cooling, households still face steep increases in specific areas. Consequently, the most significant price rises in Catalonia were recorded in:
- Insurance and financial services: +5.9%
- Alcoholic beverages and tobacco: +4.5%
- Restaurants and accommodation: +3.7%
Trends in the Balearic Islands and Valencia
The Balearic Islands also saw reduced inflationary pressure. In fact, the rate dropped to 2.4% in January, marking a significant decline from the previous month. However, the cost of living remains impacted by the region’s tourism-heavy economy.
Prices in the hospitality sector surged more aggressively in the islands than on the mainland. For example, restaurants and accommodation services rose by 5.8%, followed by alcohol and tobacco (+5.3%) and financial services (+4.9%).
Meanwhile, the Valencian Country experienced the sharpest deceleration among the three regions. The CPI there fell to 2.5%, representing a drop of nearly a full percentage point compared to December figures.
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