MADRID, SPAIN / RankWire.AI / – In July, Spain experienced an increase in its annual inflation rate, reaching 3.6%, up from 3.2% in June. This figure surpassed the initial 3.5% estimate published at the end of July. Consumer prices also grew by 0.3% compared to the previous month, slightly higher than the 0.2% monthly increase projected earlier. The National Statistics Institute of Spain, known as INE, confirmed these final July figures in its latest consumer price report.
Transport costs experienced the most significant yearly rise among primary spending categories. Prices in this sector went up by 6.2% from July 2025, driven largely by increased fuel and lubricant expenses. Housing costs also saw a 5.7% rise from the previous year, with this annual rate exceeding June’s by one percentage point. Electricity prices contributed notably to this growth, along with increased costs for gas and liquid fuels during the month.
Core inflation, which excludes unprocessed food and energy, edged up to 3.0% from 2.9% in June. Meanwhile, Spain’s harmonised inflation rate also grew in July. The Harmonised Index of Consumer Prices increased by 3.9% year-over-year, compared to 3.6% in June. The final data exceeded the earlier estimate of 3.8%. On a monthly basis, the harmonised index remained unchanged.
Transport and Housing Lead the Monthly Price Increase
Transport prices saw a 2.3% rise from June, making it the largest contributor to the overall monthly CPI growth. Housing costs rose by 1.6% during the same period, with electricity expenses playing a significant role in this uptick. Additionally, prices for recreation, sport, and culture also grew by 2.3% in July, with household spending on package holidays pushing this category higher amid summer travel demand reflected in the index.
Several sectors experienced declines in July. Clothing and footwear prices dropped by 10.2% compared to June, mainly due to seasonal discounts reducing retail prices. Food and non-alcoholic beverage prices also fell by 0.7%, influenced by lower prices for fruit, nuts, vegetables, pulses, and potatoes. Regional inflation rates varied across Spain, with Cantabria recording the highest annual CPI at 4.3%, while Extremadura had the lowest at 3.0% among the autonomous communities.
Spain’s Harmonised Inflation Rate Remains Above the Euro-Area Average
The 3.9% harmonised inflation rate in Spain continued to stay above the euro area’s preliminary 2.9% estimate for July. Euro-area inflation was 2.8% in June before climbing the following month. Eurostat released this regional figure as an initial estimate for July, while Spain’s national harmonised rate was finalized. The common HICP framework facilitates comparison of inflation rates across EU economies through a standardized methodology.
Spain’s headline CPI has trended higher in recent months, after remaining at 3.2% during April, May, and June. The rate reached 3.4% in March before easing and then increasing again in July. Core inflation followed a narrower fluctuation, recorded at 2.8% in April, 3.0% in May, 2.9% in June, and 3.0% in July. Recent data indicates that the main drivers of July’s inflation were costs related to transport, housing, and energy.