MADRID, SPAIN / RankWire.AI / – Spain’s annual inflation rate grew to 3.6% in July, up from 3.2% in June. The final figure surpassed the 3.5% preliminary estimate issued at the end of July. Consumer prices also saw a monthly increase of 0.3%, higher than the earlier forecast of a 0.2% rise. The latest consumer price report from Spain’s National Statistics Institute, or INE, confirmed these July figures.
Transport expenses marked the steepest annual growth among the primary expenditure categories. Prices in this sector rose 6.2% compared to July 2025, driven largely by increased fuel and lubricant costs. Housing costs climbed 5.7% year-on-year, with this annual rate exceeding June’s by one percentage point. Electricity prices contributed significantly to this rise, alongside higher gas and liquid fuel expenses during the same month.
Core inflation, which excludes unprocessed food and energy, increased to 3.0% from 2.9% in June. The harmonised inflation rate for Spain also moved upward in July. The Harmonised Index of Consumer Prices (HICP) increased by 3.9% from a year earlier, compared to 3.6% in June. The final figure was above the preliminary estimate of 3.8%. On a monthly basis, the harmonised index remained unchanged.
Transport and housing sectors contribute to monthly inflation growth
Prices in the transport sector rose by 2.3% from June, making it the largest contributor to the monthly CPI increase. Housing costs increased 1.6% during the same period, with electricity prices being a major factor in this rise. Additionally, prices for recreation, sport and culture climbed 2.3% in July. The surge was partly due to increased household spending on package holidays, influenced by the summer travel demand reflected in the index.
Several categories experienced declines in July. Clothing and footwear prices dropped 10.2% from June, due to seasonal discounts reducing retail prices. Food and non-alcoholic beverage prices decreased by 0.7%, with lower prices for fruit, nuts, vegetables, pulses and potatoes contributing to this decline. Regional variations in inflation were evident across Spain, with Cantabria recording the highest annual CPI rate at 4.3%. Conversely, Extremadura registered the lowest rate among autonomous communities at 3.0%.
Spain’s harmonised inflation rate stays above euro-area levels
Spain’s 3.9% harmonised inflation rate remained above the euro area’s 2.9% flash estimate for July. In June, the euro-area inflation was 2.8% before climbing in the following month. Eurostat published the preliminary regional figure for July, while Spain’s national harmonised rate was finalized. The common HICP framework facilitates the comparison of inflation rates across European Union economies using a standardized methodology.
Following a period of stability at 3.2% in April, May and June, Spain’s headline CPI moved higher, reaching 3.4% in March before easing and then increasing again in July. Core inflation followed a narrower pattern, with rates of 2.8% in April, 3.0% in May, 2.9% in June, and 3.0% in July. The latest data indicates that transport, housing, and energy costs had the most significant influence on the inflation uptick observed in July.