Large figures that occupy headlines and invite the Government to boast about its economic management. In parallel, other amounts, not so vast –but with a greater influence on 'the cost of living'– that shrink the citizen's pocket. From the comparison emanates an evident distortion: although Spain is going through a good moment in macroeconomic terms, that does not translate into an improvement in the quality of life (on the contrary). And one of the reasons must be sought in inflation, since the increase in wages collides head-on with the accumulated rise in the prices of goods and services.
The CPI stood at 3.6% in July, according to the definitive data provided by the National Institute of Statistics (INE). Four tenths above the 3.2% recorded in June. Inflation had started 2026 at 2.3%, rose to 3.4% in March, and then remained at 3.2% during April, May, and June. The 3.6% of July therefore represents the highest level since March.
In 2025, wages outpaced inflation, but barely
A first comparison allows us to put into context the evolution of wages during the past year. The gross annual salary per worker reached 28,410.78 euros in 2025, 3.1% more than in 2024, according to the Annual Labor Cost Survey by the INE.
The CPI closed 2025 at 2.9%, so the increase in the average gross annual salary was two tenths above the inflation recorded in December. Taking these two references, wage growth slightly outpaced the rise in prices at the end of the year.
The comparison has a limitation that should be taken into account: the 3.1% measures how much the average gross annual salary increased between 2024 and 2025, while the 2.9% reflects the price variation between December 2024 and December 2025. Therefore, the two figures allow us to observe the relationship between wages and inflation, but do not directly calculate how much the purchasing power of each worker increased or decreased.
The agreements of 2026 leave an unequal picture
The data from the Statistics of Collective Labor Agreements show another perspective. Among the agreements signed in 2026, the average agreed wage increase is 3.76% (above 3.6%). In total, there are 460 agreements affecting 1,136,238 workers, according to the data collected by the Ministry of Labor's statistics.
But that percentage changes depending on the scope of the agreement. The 321 company agreements signed in 2026, which affect 76,736 workers, contemplate an average increase of 2.97%. The three group agreements, with 1,193 affected workers, agree on an increase of 3.47%. In the 136 sector agreements, which affect 1,058,309 workers, the average increase reaches 3.82%.
The comparison with the 3.6% inflation of July thus leaves three different situations. The company agreements are 0.63 points below the CPI and the group agreements are also lower (-0.13). The sector agreements, on the other hand, exceed inflation by 0.22 points.
However, this is not an exact comparison. The CPI measures the evolution of prices between July 2025 and July 2026, while the statistics of agreements record the salary variations agreed upon in the agreements registered during 2026. Furthermore, a salary increase agreed upon in an agreement does not necessarily imply that all affected workers have already seen that increase applied to their payroll.
Real wages grew by 2%, but remain below 2021
The third figure analyzed by Demócrata allows for a direct measurement of what has happened to the purchasing power of wages. The OECD indicates in its report OECD Employment Outlook 2026 that real wages in Spain grew by 2% over the last year. As these are real wages, this figure already accounts for the effect of inflation: it is not a nominal wage increase from which the evolution of the CPI must be subtracted later.
The comparison made by the organization takes the first quarter of 2026 as a reference against the same period of 2025. Therefore, that 2% does not mean that real wages increased by 2% throughout 2025 nor can it be directly compared to the 2.9% with which inflation ended that year. What it does show is that, after accounting for the evolution of prices, wages regained part of their purchasing power during the last year analyzed.
Despite this improvement, the recovery remains incomplete: the OECD estimates that real wages in Spain were still 2% below their level in the first quarter of 2021. The organization thus places Spain among the OECD countries where the purchasing power of wages has declined the most since then.
The forecast for 2026 and 2027 is also not one of strong recovery
The OECD also does not expect a significant rebound in real wages in the next two years. Its forecast for Spain points to a stagnation of real wages during 2026 and 2027, in a scenario marked by new pressures on prices and by a labor productivity growth that has been weak over the last decade.
The organization also points out that the significant increases in the minimum wage have protected low-income workers from inflation, but it considers that this coexists with a broader stagnation of wages in much of the labor market. The evolution of productivity will be another of the determining factors for citizens to be able to recover purchasing power in a sustained manner.