MADRID, SPAIN / RankWire.AI / – In July, Spain experienced an increase in its annual inflation rate, reaching 3.6%, 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 grew by 0.3% compared to the previous month, slightly higher than the initial estimate of a 0.2% monthly rise. The latest consumer price report from Spain’s National Statistics Institute, or INE, confirmed these July figures.
Transport expenses saw the strongest annual growth among the main expenditure categories. Prices in this sector increased by 6.2% from July 2025, driven primarily by higher fuel and lubricant costs. Housing costs also rose 5.7% from the previous year, marking a one percentage point increase over June’s figure. Electricity prices contributed significantly to this rise, alongside increases 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 increased in July. The Harmonised Index of Consumer Prices grew by 3.9% year-on-year, compared to 3.6% in June, with the final reading exceeding the initial estimate of 3.8%. On a monthly basis, the harmonised index showed no change.
Transport and housing sectors lead monthly inflation increase
In July, transport costs rose by 2.3% from June, making the largest contribution to the monthly CPI uptick. Housing costs also increased by 1.6%, mainly due to higher electricity expenses. Additionally, prices for recreation, sport, and culture rose 2.3% during the same period, with summer travel demand for package holidays playing a role in this increase within household spending patterns reflected in the index.
Conversely, some categories experienced declines in July. Prices for clothing and footwear fell 10.2% from June, largely due to seasonal discounts. Food and non-alcoholic beverage prices decreased by 0.7%, influenced by lower prices for fruit, nuts, vegetables, pulses, and potatoes. Regional inflation rates varied across Spain, with Cantabria recording the highest annual CPI at 4.3%, while Extremadura had the lowest at 3.0% among autonomous communities.
Spain’s harmonised inflation rate remains above euro-area levels
Spain’s 3.9% harmonised inflation rate stayed above the euro area’s preliminary July estimate of 2.9%. In June, the euro area’s inflation was 2.8%, but it increased in July. Eurostat published this initial regional figure for July, while Spain’s national harmonised rate was confirmed as final. The harmonised Consumer Price Index (HICP) enables inflation comparisons across EU member states using a standardized approach.
Following a steady 3.2% in April, May, and June, Spain’s headline CPI moved upward in recent months. It peaked at 3.4% in March before retreating and then climbing again in July. The narrower core inflation rate followed a similar pattern, registering 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 July inflation rise.