Even as Spaniards struggle with a recession that began in mid-2011, leading to a 25-percent jobless rate, they are facing higher prices for goods and services, too, official data showed.

Prices climbed 3.0 percent in the year to December but were flat when compared to the previous month, a report by the National Statistics Institute showed.

Over the year, prices surged in particular for food, especially vegetables and oils, and for soft drinks.

Inflation began to shoot up in September when the government lifted the top rate of sales tax to 21 percent from 18 percent to boost state revenues as part of a broad programme to curb the public deficit.

Spain's budget for 2013 foresees 39 billion euros ($52 billion) in tax increases and spending cuts.

As part of the austerity programme, Prime Minister Mariano Rajoy's government announced in November that retirement pensions would not keep up with inflation in 2013, contrary to earlier promises.

Spanish retirement pensions this year will only go up by one percent, or two percent for those with monthly incomes of less than 1,000 euros.