MADRID, SPAIN / RankWire.AI / – The annual inflation rate in Spain climbed to 3.6% in July from 3.2% in June, with the final figure surpassing the preliminary estimate of 3.5% released at the end of July. Consumer prices also grew 0.3% compared to the previous month, whereas earlier estimates suggested a 0.2% monthly increase. The National Statistics Institute, or INE, confirmed these final July figures in its latest consumer price report.
Transport expenses registered the most significant annual uptick among primary expenditure categories. Prices in this sector increased by 6.2% compared to July 2025, primarily driven by higher fuel and lubricant costs. Housing costs also rose by 5.7% year-over-year, a rate that is one percentage point higher than June’s figure. Electricity prices contributed notably to this rise, along with increased costs for gas and liquid fuels during the month.
Excluding unprocessed foods and energy, core inflation edged up to 3.0% from 2.9% in June. The harmonised inflation rate in Spain also saw an upward movement in July, with the Harmonised Index of Consumer Prices increasing by 3.9% year-on-year, compared to 3.6% in June. The final data surpassed the preliminary estimate of 3.8%. On a month-to-month basis, the harmonised index remained unchanged.
Transport and Housing Lead the Monthly Price Growth
Transport prices experienced a 2.3% rise from June, contributing the most to the monthly CPI increase. The housing sector also saw a 1.6% increase, with higher electricity costs playing a key role. Additionally, prices in recreation, sport and culture categories climbed 2.3% during July, partly due to increased household spending on package holidays amid summer travel demand, as reflected in the index.
Several sectors, however, saw price declines in July. Clothing and footwear prices dropped 10.2% from June, driven by seasonal discounts. Food and non-alcoholic beverages decreased by 0.7%, largely due to lower prices for fruit, nuts, vegetables, pulses, and potatoes. Regional inflation rates also varied across Spain, with Cantabria recording the highest annual CPI at 4.3%, while Extremadura had the lowest at 3.0% among the autonomous communities.
Spain’s Harmonised Inflation Remains Elevated Compared to Euro Area
Spain’s 3.9% harmonised inflation rate continued to exceed the euro area’s preliminary estimate of 2.9% for July. Euro-area inflation was 2.8% in June before rising in the following month. Eurostat published this initial July figure, while Spain’s national harmonised data was finalized. The common HICP framework facilitates comparison of inflation rates across European Union countries using a standardized approach.
After remaining steady at 3.2% in April, May, and June, Spain’s headline CPI moved higher in recent months, reaching 3.4% in March before easing and then climbing again in July. Core inflation remained within a narrow range, at 2.8% in April, 3.0% in May, 2.9% in June, and 3.0% in July. The latest figures indicate that transportation, housing, and energy costs had the most significant impact on the inflation increase observed in July.