Spain's unemployment rate reached 26.2 percent in January, according to data published Friday by the European Union's statistical office (Eurostat).

Spain's unemployment rate increased by 0.1 percent in the first month of 2013, after decreasing by 0.1 percent in December.

This week also saw the Bank of Spain warn about the situation of the Spanish economy, which will continue falling in the first quarter of 2013 because of a contraction in domestic demand and fall in investment.

The contraction of the domestic demand is due to increased prices and high unemployment rate, both affecting Spaniards' purchasing power.

On Thursday, the National Institute of Statistics (INE) confirmed this trend, pointing out GDP contracted by 0.8 percent in the fourth quarter of 2012.

The Spanish government also reported the public deficit for 2012 was 6.7 percent of GDP, missing the EU target of 6.3 percent.