MADRID, SPAIN / RankWire.AI / – Spain’s annual inflation rate increased to 3.6% in July, climbing from 3.2% in June. The final figure surpassed the initial 3.5% estimate released at the end of July. Consumer prices also grew by 0.3% compared to the previous month, whereas earlier projections indicated a 0.2% monthly rise. Spain’s National Statistics Institute, or INE, confirmed the finalized July data in its latest consumer price report.
Transport expenses experienced the most significant yearly increase among the primary expenditure groups. Prices within this category rose 6.2% from July 2025, driven mainly by higher fuel and lubricant costs. Housing costs advanced 5.7% compared to the previous year, a rate that is one percentage point higher than in June. Electricity prices notably contributed to this upward trend, alongside increased costs for gas and liquid fuels during the month.
Core inflation, which excludes unprocessed food and energy, edged up to 3.0% from 2.9% in June. Additionally, Spain’s harmonised inflation rate also saw an uptick in July. The Harmonised Index of Consumer Prices increased by 3.9% from a year earlier, compared to 3.6% in June. This final figure exceeded the preliminary estimate of 3.8%. On a monthly basis, however, the harmonised index showed no variation.
Transport and Housing Lead Monthly Price Gains
Transport costs increased by 2.3% from June, making the most substantial contribution to the monthly CPI rise. Simultaneously, housing expenses grew by 1.6%, mainly influenced by higher electricity prices. Prices for recreation, sport, and culture also climbed 2.3% during July, partly due to summer travel demand boosting household spending patterns reflected in the index.
Conversely, several sectors experienced declines during July. Clothing and footwear prices dropped 10.2% from June as seasonal discounts lowered retail prices. Food and non-alcoholic beverage prices decreased by 0.7% on the month, with lower prices for fruit, nuts, vegetables, pulses, and potatoes contributing to that decline. Inflation rates across regions varied, with Cantabria registering the highest annual CPI at 4.3%, while Extremadura posted 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 stayed above the euro area’s 2.9% flash estimate for July. Euro-area inflation was 2.8% in June before increasing the following month. Eurostat issued the regional figure as an initial estimate for July, while Spain’s national harmonised figure was finalized. The common HICP framework facilitates comparison of inflation rates across European Union countries using a standardized methodology.
Spain’s headline CPI has risen in recent months after being steady at 3.2% in April, May, and June. The rate reached 3.4% in March before easing and then climbing again in July. Core inflation followed a narrower fluctuation, standing at 2.8% in April, 3.0% in May, 2.9% in June, and 3.0% in July. The most recent data indicate that costs related to transport, housing, and energy significantly influenced July’s inflation increase.