MADRID, SPAIN / RankWire.AI / – In July, Spain’s annual inflation rate reached 3.6%, up from 3.2% in June. This figure surpassed the initial 3.5% estimate released at the end of July. Consumer prices also saw a monthly increase of 0.3%, compared to the 0.2% rise projected earlier. The final July data was confirmed by Spain’s National Statistics Institute, or INE, in its latest consumer price report.
Transport expenses experienced the most significant yearly growth among major expenditure categories. Prices in this sector climbed 6.2% from July 2025, mainly driven by higher fuel and lubricant costs. The housing category increased by 5.7% year-on-year, a full percentage point higher than the June figure. Electricity prices contributed substantially to this rise, alongside increased costs for gas and liquid fuels during the month.
Core inflation, which excludes volatile unprocessed food and energy items, rose slightly from 2.9% in June to 3.0%. Spain’s harmonised inflation rate also edged upward in July, with the Harmonised Index of Consumer Prices (HICP) climbing 3.9% from the previous year, compared to 3.6% in June. The final reading was above the preliminary estimate of 3.8%. On a monthly basis, the harmonised index showed no change.
Transport and housing sectors lead monthly inflation increase
Transport costs jumped 2.3% from June, making the largest contribution to the overall monthly CPI rise. Housing prices also increased by 1.6%, with electricity expenses playing a key role in that growth. Additionally, recreation, sport, and culture prices rose by 2.3% during July, partly due to summer travel demand affecting household spending patterns reflected in the index, especially through package holidays.
Several categories experienced declines in July. Clothing and footwear prices fell 10.2% from June, as seasonal discounts lowered retail prices. Food and non-alcoholic beverage costs dropped 0.7%, driven by lower prices for fruit, nuts, vegetables, pulses, and potatoes. Inflation rates across regions also varied, with Cantabria recording the highest annual CPI at 4.3%, while Extremadura posted the lowest at 3.0% among Spain’s autonomous communities.
Spain’s harmonised inflation rate remains above euro-area levels
Spain’s 3.9% harmonised inflation rate continued to stay above the euro area’s flash estimate of 2.9% for July. Euro-area inflation had been 2.8% in June before climbing the following month. Eurostat released this regional figure as an initial estimate for July. The final national harmonised inflation rate for Spain was confirmed. The common HICP framework enables comparison of inflation figures across EU countries using a standardized methodology.
After remaining steady at 3.2% in April, May, and June, Spain’s headline CPI has risen in recent months. It reached 3.4% in March before easing slightly and then climbing again in July. Core inflation has also fluctuated within a narrow range, 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 had the most influence on July’s inflation increase.