MADRID, SPAIN / RankWire.AI / – According to official figures, Spain’s annual inflation rate reached 3.6% in July, up from 3.2% in June. This outcome exceeded the initial flash estimate of 3.5% released on July 30. Consumer prices experienced a monthly increase of 0.3%, higher than the preliminary estimate of 0.2%. The National Statistics Institute, or INE, confirmed that the July data are definitive and will not be revised further.
Transport was the leading factor contributing to the rise in the annual rate, with prices in this category climbing 6.2% from the previous year. The increase mainly reflected higher costs for fuel and lubricants used in personal vehicles, rising more sharply than in July 2025. Housing expenses grew by 5.7% annually, one percentage point above June’s rate, driven by faster increases in electricity prices compared to the previous year.
Core inflation, which excludes unprocessed food and energy items, edged upward to 3.0% from 2.9% in June. Spain’s Harmonised Index of Consumer Prices (HICP) increased 3.9% year-over-year, compared with 3.6% in June. The final harmonised rate also surpassed the preliminary estimate of 3.8%. On a monthly basis, the harmonised index remained stable in July. This measure provides a standardized comparison of inflation across European Union member states.
Fuel and electricity costs drive July price increases
During July, transport prices rose by 2.3%, representing the largest positive contribution to Spain’s headline CPI for that month. Housing costs also increased by 1.6%, mainly due to rising electricity prices and smaller hikes in gas and liquid fuels. Additionally, prices for recreation, sport and culture grew by 2.3%, largely driven by higher costs for package holidays. These increases collectively offset declines in other consumer categories.
Clothing and footwear prices dropped 10.2% from June, primarily due to Spain’s summer sales reducing prices across this segment. Food and non-alcoholic beverages declined by 0.7%, reflecting lower costs for fruit, nuts, vegetables, pulses and potatoes. Among Spain’s autonomous communities, Cantabria experienced the highest annual CPI increase at 4.3%, whereas Extremadura recorded the lowest at 3.0%. The national inflation rate stood at 3.6%.
Spain’s harmonised inflation remains above the euro-area average
In July, Spain’s harmonised inflation rate of 3.9% stayed above the euro area’s preliminary estimate of 2.9%. In June, euro-area inflation was at 2.8% but rose slightly in July. Eurostat reported the euro-area figure as an initial estimate, whereas Spain’s national harmonised rate is final. This harmonised metric allows for consistent inflation comparisons across EU nations.
The July release continues a recent upward trend in Spain’s headline CPI, which reached 3.4% in March. It then remained at 3.2% in April, May, and June before increasing again in July. Core inflation moved from 2.8% in April to 3.0% in May, then to 2.9% in June, and back to 3.0% in July. The INE computes the CPI based on around 200,000 monthly price observations covering goods and services purchased by households across Spain.