MADRID, SPAIN / RankWire.AI / – In July, Spain’s annual inflation surged to 3.6%, up from 3.2% in June. This figure surpassed the preliminary estimate of 3.5% issued at the end of July. Consumer prices increased by 0.3% compared to the previous month, exceeding the earlier forecast of a 0.2% rise. Spain’s National Statistics Institute, or INE, confirmed these final July figures in its latest consumer price report.
Transport expenses experienced the most significant yearly increase among key expenditure sectors, rising 6.2% from July 2025, mainly due to higher fuel and lubricant costs. Housing prices also grew by 5.7% compared to the previous year, with this annual rate being one percentage point higher than June’s figure. Contributing to this increase, electricity prices and costs for gas and liquid fuels also moved upward 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, with the Harmonised Index of Consumer Prices rising 3.9% year-on-year, compared to 3.6% in June. The final figure was above the initial estimate of 3.8%. On a monthly basis, the harmonised index showed no change.
Transport and housing costs lead monthly price growth
Transport prices increased by 2.3% from June, making the largest contribution to the monthly CPI rise. Housing prices also grew 1.6%, with higher electricity costs playing a key role. Recreation, sport, and culture expenses climbed 2.3%, influenced by the summer travel season and package holidays, which affected household spending patterns reflected in the index.
In contrast, some categories declined in July. Clothing and footwear prices fell 10.2% from June due to seasonal discounts. Food and non-alcoholic beverage prices decreased by 0.7%, driven by lower prices for fruit, nuts, vegetables, pulses, and potatoes. Regional inflation rates also varied, with Cantabria reporting the highest annual CPI at 4.3%, while Extremadura registered the lowest at 3.0% among Spain’s autonomous communities.
Spain’s harmonised inflation rate remains above euro-area levels
Spain’s 3.9% harmonised inflation rate stayed above the euro area’s initial July estimate of 2.9%. Euro-area inflation was 2.8% in June before rising the following month. Eurostat released this regional figure as an early July estimate, while Spain’s national harmonised figure was final. The standardised HICP framework facilitates comparison of inflation rates across European Union countries using a consistent methodology.
After remaining at 3.2% in April, May, and June, Spain’s headline CPI climbed again, reaching 3.4% in March before easing slightly and then increasing in July. Core inflation stayed within a narrow range, at 2.8% in April, 3.0% in May, 2.9% in June, and 3.0% in July. The latest data indicate that transportation, housing, and energy costs were the primary drivers of July’s inflation increase.