MADRID, SPAIN / RankWire.AI / – Spain’s annual inflation rate climbed to 3.6% in July, up from 3.2% in June. The figure exceeded the 3.5% preliminary estimate issued at the end of July. Additionally, consumer prices increased by 0.3% compared to the previous month, surpassing the earlier forecast of a 0.2% monthly rise. Spain’s National Statistics Institute, known as INE, confirmed the final July figures in its latest consumer price report.
Transport costs experienced the strongest annual growth among primary expenditure categories, with prices rising 6.2% from July 2025, driven mainly by increased fuel and lubricant expenses. The housing segment saw a 5.7% year-on-year increase, which was one percentage point higher than June’s reading. Electricity prices were a significant factor, along with higher costs for gas and liquid fuels during the month.
Core inflation, which excludes volatile unprocessed food and energy, edged up to 3.0% from 2.9% in June. Spain’s harmonised inflation rate also increased in July. The Harmonised Index of Consumer Prices (HICP) rose 3.9% year-over-year, compared with 3.6% in June, and the final figure surpassed the preliminary 3.8% estimate. On a monthly basis, however, the harmonised index remained unchanged.
Transport and housing sectors lead monthly inflation rise
In July, transport prices went up by 2.3% from June, making the largest contribution to the monthly CPI increase. Housing costs also saw a 1.6% rise, with electricity prices being a major contributor. Prices in recreation, sport, and culture also grew by 2.3%, partly due to increased household spending on package holidays amid summer travel demand, which influenced the index.
Several categories experienced declines during July. Clothing and footwear prices fell 10.2% from June, mainly due to seasonal discounts that lowered retail prices. Food and non-alcoholic beverages decreased by 0.7%, with lower prices for fruit, nuts, vegetables, pulses, and potatoes contributing to the decline. Regional inflation rates varied across Spain, with Cantabria recording the highest annual CPI at 4.3%, while Extremadura posted the lowest at 3.0% among the autonomous communities.
Spain’s harmonised inflation rate stays above euro-area average
The harmonised inflation rate in Spain, standing at 3.9%, remained above the euro-area estimate of 2.9% for July. Euro-area inflation was 2.8% in June before rising in July. Eurostat provided the regional figure as an initial estimate for July, whereas Spain’s national harmonised rate was confirmed as final. The HICP framework enables comparison of inflation rates across European Union countries using a standardized method.
Spain’s headline CPI has moved upward over recent months, after holding at 3.2% in April, May, and June. It reached 3.4% in March before easing and then climbing again in July. Core inflation displayed 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 costs related to transport, housing, and energy played the most significant roles in the July inflation increase.