The INE confirms that inflation moderated to 3% in November and that pensions will rise by 2.7% in 2026

The National Institute of Statistics (INE) has confirmed this Friday that Inflation moderated by one tenth in November to stand at 3%. This is reflected in the data from the Consumer Price Index (CPI) that the official statistical office published this morning.

Once the official figure for November is known, It has also been confirmed that public pensions will be revalued by 2.7% next year. The increase will begin to be noticed in the payrolls next January, although the Government still has to approve it by royal decree law.

The favorable evolution of electricity prices It has been the main factor that has allowed inflation to moderate after having risen for several months. In October, electricity bill prices were 18.7% higher than the same month in 2024, a growth rate that has moderated to 11.9% in November.

However, Food, gasoline and tourist packages once again pushed upwards on prices, contributing in the opposite direction. Regarding the shopping basket, inflation accelerated from 2.4% year-on-year in October to 2.8% in November, reaching the maximum in June of this year.

With regards to the core inflation —which deducts energy and processed foods from the calculation, due to their volatility—was placed in the 2.6% last month. Still one tenth above the level recorded in October.

Although the December data is still to be known, everything indicates that the rise in consumer prices in 2025 will close at around 2.6-2.7% on average, just two tenths less than last year’s figure. The forecasts of analysts such as Funcas – a study center for the former savings banks – indicate that inflation will moderate in the first quarter of next year, but then it will gain momentum again. The expectations of its analysts are that consumer prices will rise by 2.4% in 2026.

In principle, the salary increases shown in the latest remuneration statistics suggest that workers could recover some purchasing power this year as well. However, the latest data from the Quarterly Labor Cost Index suggest that wage increases moderated considerably in the third quarter.