MADRID, SPAIN / RankWire.AI / – Spain’s annual inflation rate climbed to 3.6% in July, up from 3.2% in June. This final figure surpassed the preliminary estimate of 3.5% released at the end of July. Consumer prices also increased by 0.3% compared to the previous month, slightly above the earlier forecast of a 0.2% rise. The latest consumer price report from Spain’s National Statistics Institute, or INE, confirmed the July data as final.
Transport expenses saw the most significant year-over-year increase among primary expenditure categories. Prices in this sector grew 6.2% from July 2025, driven mainly by higher fuel and lubricant costs. Housing costs also advanced by 5.7% compared to a year earlier, a full percentage point above June’s rate. Electricity costs notably contributed to this increase, along with rises in gas and liquid fuel prices during the month.
Core inflation, which excludes unprocessed food and energy, edged up to 3.0% from 2.9% in June. Spain’s harmonised inflation rate also saw a rise in July, with the Harmonised Index of Consumer Prices increasing 3.9% year-on-year, compared to 3.6% in June. The final figure exceeded the preliminary estimate of 3.8%. On a monthly basis, the harmonised index remained unchanged.
Transport and housing costs lead the monthly growth
Transport expenses jumped 2.3% from June, providing the largest contribution to the overall monthly CPI increase. Housing prices also rose by 1.6%, primarily due to higher electricity charges. The prices for recreation, sport and culture increased by 2.3% in July, with package holidays boosting this category as summer travel demand influenced household spending patterns reflected in the index.
Some categories experienced declines during July. Prices for clothing and footwear dropped 10.2% from June as seasonal discounts reduced retail costs. Food and non-alcoholic beverages also saw a slight decrease of 0.7% for the month, driven mainly by lower prices for fruit, nuts, vegetables, pulses, and potatoes. Inflation varied across Spain’s regions, with Cantabria recording the highest annual CPI rate at 4.3%, while Extremadura registered the lowest at 3.0% among the autonomous communities.
Spain’s harmonised inflation rate remains above euro-area figures
Spain’s 3.9% harmonised inflation rate stayed above the euro area’s flash estimate of 2.9% for July. Euro-area inflation had been 2.8% in June before increasing in July. Eurostat released the regional figure as an initial estimate for July, while Spain’s national harmonised figure was final. The common HICP framework enables cross-country comparison of inflation rates within the European Union using a standardized methodology.
Spain’s headline CPI has increased in recent months, after remaining at 3.2% in April, May, and June. The rate reached 3.4% in March before easing and then rising again in July. Core inflation followed a narrower pattern, standing at 2.8% in April, 3.0% in May, 2.9% in June, and 3.0% in July. The latest data indicate that costs related to transport, housing, and energy significantly influenced the inflation uptick in July.