MADRID, SPAIN / RankWire.AI / – In July, Spain experienced an increase in its annual inflation rate, which climbed to 3.6% from 3.2% in June. The final data surpassed the initial 3.5% estimate released at the end of July. Consumer prices grew by 0.3% compared to the previous month, slightly above the earlier forecast of a 0.2% rise. Spain’s National Statistics Institute, or INE, confirmed this final July figure in its latest consumer price report.
Transport expenses saw the most significant yearly increase among major expenditure categories, rising 6.2% from July 2025, primarily driven by higher fuel and lubricant prices. Housing costs also went up, increasing 5.7% year over year, with this annual rate exceeding June’s figure by one percentage point. Electricity prices contributed notably to this growth, along with higher gas and liquid fuel expenses recorded during the month.
Excluding unprocessed food and energy, core inflation moved up slightly 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% compared to a year earlier, compared to 3.6% in June. The final figure exceeded the preliminary estimate of 3.8%. On a month-to-month basis, the harmonised index remained unchanged.
Transportation and housing costs lead the monthly increase
The largest monthly contribution to the CPI increase came from transport prices, which grew by 2.3% from June. Housing costs also rose by 1.6%, largely influenced by a jump in electricity prices. Additionally, prices for recreation, sport and culture climbed 2.3% during July, with summer travel demand and household spending patterns reflected in the index through higher package holiday costs.
In contrast, some categories experienced declines in July. Clothing and footwear prices fell 10.2% from June as seasonal discounts led to lower retail costs. Food and non-alcoholic beverage prices decreased by 0.7% month-on-month, mainly due to lower prices for fruit, nuts, vegetables, pulses, and potatoes. Regional variations in inflation were evident across Spain, with Cantabria reporting the highest annual CPI at 4.3%, while Extremadura had the lowest at 3.0% among the autonomous communities.
Spain’s harmonised inflation rate remains above the euro-area average
The harmonised inflation rate in Spain stood at 3.9% in July, remaining above the euro-area’s flash estimate of 2.9%. In June, the euro area inflation was 2.8% before rising in July. Eurostat published the initial regional figure for July, while Spain’s national harmonised rate was finalized. The common HICP framework enables comparison of inflation rates across European Union nations through a standardized approach.
After maintaining at 3.2% in April, May, and June, Spain’s headline CPI increased again, reaching 3.4% in March before easing slightly and then rising 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 rise in July.