MADRID, SPAIN / RankWire.AI / – In Spain, the annual inflation rate hit 3.6% in July, up from 3.2% in June. This figure surpassed the initial 3.5% estimate released at the end of July. Additionally, consumer prices increased by 0.3% compared to the previous month, slightly above the earlier forecast of a 0.2% monthly rise. The final July data was confirmed by Spain’s National Statistics Institute, or INE, in its latest consumer price report.
Transport costs experienced the most significant year-on-year increase among primary expenditure categories. Prices in this segment rose by 6.2% from July 2025, driven mainly by higher fuel and lubricant expenses. The housing sector also saw a 5.7% increase from the previous year, which was one percentage point above June’s figure. Electricity prices contributed notably to this upward trend, alongside increased gas and liquid fuel costs throughout 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 climbed in July, with the Harmonised Index of Consumer Prices rising 3.9% compared to a year earlier, surpassing June’s 3.6%. The final data exceeded the preliminary estimate of 3.8%. On a monthly basis, the harmonised index remained unchanged.
Transport and housing costs lead monthly inflation increase
Transport prices jumped 2.3% from June, making the largest contribution to the month’s CPI rise. Meanwhile, housing prices increased by 1.6% during the same period, with electricity costs playing a key role in this growth. The recreation, sport, and culture category also grew by 2.3% in July, largely influenced by summer travel demand, which affected household spending patterns reflected in the index.
Some categories experienced declines in July. Clothing and footwear prices fell by 10.2% from June, mainly due to seasonal discounts. Food and non-alcoholic beverages decreased by 0.7%, with lower prices for fruit, nuts, vegetables, pulses, and potatoes contributing to this drop. Regional inflation rates varied across Spain, with Cantabria recording the highest annual CPI at 4.3%, while Extremadura registered the lowest at 3.0% among the autonomous communities.
Spain’s harmonised inflation remains above the euro-area average
Spain’s harmonised inflation rate of 3.9% in July stayed above the euro area’s preliminary 2.9% estimate. Euro-area inflation was 2.8% in June before increasing the following month. Eurostat released this initial July figure as the regional estimate. Spain’s national harmonised rate, however, was finalized. The common HICP framework facilitates comparison of inflation across EU member states using a standardized methodology.
After remaining steady at 3.2% in April, May, and June, Spain’s headline CPI has moved higher in recent months. It peaked at 3.4% in March before easing and then rising again in July. Core inflation followed a narrower range, recording 2.8% in April, 3.0% in May, 2.9% in June, and 3.0% in July. The latest data highlights the significant influence of transport, housing, and energy costs on July’s inflation rate.