MADRID, SPAIN / RankWire.AI / – In July, Spain’s annual inflation rate climbed to 3.6%, up from 3.2% in June. The final figure surpassed the preliminary estimate of 3.5% that was released at the end of July. Consumer prices increased by 0.3% compared to the previous month, exceeding the earlier estimate of a 0.2% monthly rise. Spain’s National Statistics Institute, or INE, verified these final July figures in its latest consumer price report.
Transport costs experienced the most significant annual growth among the main expenditure categories. Prices within this sector rose 6.2% from July 2025, primarily driven by increased fuel and lubricant expenses. Housing prices also saw a 5.7% rise from the previous year, with this annual rate being one percentage point higher than in June. Electricity costs significantly contributed to this increase, along with higher gas and liquid fuel prices recorded during the month.
Excluding unprocessed food and energy, core inflation reached 3.0%, up from 2.9% in June. Spain’s harmonised inflation rate also edged upward in July. The Harmonised Index of Consumer Prices increased by 3.9% year-on-year, compared to 3.6% in June, with the final reading exceeding the earlier estimate of 3.8%. On a monthly basis, the harmonised index showed no change.
Transport and Housing Costs Lead Monthly Inflation Increase
The largest contribution to the monthly CPI rise was made by transport prices, which increased 2.3% from June. Housing costs also rose 1.6% over the same period, with electricity prices playing a key role in that upward movement. Prices for recreation, sport, and culture also climbed 2.3% in July, influenced by the demand for package holidays during the summer, which affected household spending patterns reflected in the index.
Several categories experienced declines in July, however. Clothing and footwear prices dropped 10.2% from June, mainly due to seasonal discounts. Food and non-alcoholic beverage prices fell 0.7% month-on-month, with decreases seen in fruit, nuts, vegetables, pulses, and potatoes. Regional inflation varied across Spain, with Cantabria reporting the highest annual CPI at 4.3%, while Extremadura recorded the lowest at 3.0% among the autonomous communities.
Spain’s Harmonised Inflation Remains Above the Euro-Area Average
Spain’s 3.9% harmonised inflation rate continued to exceed the euro area’s preliminary 2.9% estimate for July. Euro-area inflation had been 2.8% in June before increasing the following month. Eurostat released the regional figure as an initial estimate for July, while Spain’s national harmonised figure was finalized. The common HICP framework facilitates inflation comparisons across European Union countries through a standardized methodology.
Spain’s headline CPI has trended higher over recent months after remaining steady at 3.2% in April, May, and June. The rate reached 3.4% in March before easing and then rising again in July. Core inflation experienced a narrower fluctuation, with figures of 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 had the most substantial impact on the inflation increase observed in July.