MADRID, SPAIN / RankWire.AI / – In July, Spain saw its annual inflation rate climb to 3.6%, up from 3.2% in June. This final figure surpassed the earlier 3.5% preliminary estimate issued at the end of July. Additionally, consumer prices increased by 0.3% compared to the previous month, whereas the initial estimate had suggested a 0.2% monthly rise. Spain’s National Statistics Institute, or INE, verified these July figures in its latest consumer price report.
During the same period, transport expenses experienced the strongest year-over-year growth among the main expenditure sectors, with prices rising 6.2% from July 2025, driven largely by increased fuel and lubricant costs. The housing segment saw a 5.7% increase from the previous year, which is one percentage point higher than June’s figure. Electricity prices notably contributed to this upward trend, along with higher gas and liquid fuel costs throughout the month.
Excluding unprocessed food and energy, core inflation edged up to 3.0% from 2.9% in June. Furthermore, Spain’s harmonised inflation rate also rose in July, with the Harmonised Index of Consumer Prices climbing 3.9% from a year earlier, compared to 3.6% in June. The final data exceeded the initial estimate of 3.8%. On a monthly basis, the harmonised index showed no change.
Transport and Housing Costs Propel Monthly Inflation
In July, transportation costs increased by 2.3% from June, making it the largest contributor to the month’s CPI rise. Simultaneously, housing costs grew by 1.6%, with electricity expenses being a significant factor. The categories of recreation, sport and culture also experienced a 2.3% increase, influenced by summer travel demand which affected household spending patterns captured in the index through package holidays.
Conversely, some sectors saw price declines in July. Prices for clothing and footwear dropped by 10.2% from June due to seasonal discounts. Food and non-alcoholic beverages decreased by 0.7%, mainly driven by lower prices for fruit, nuts, vegetables, pulses, and potatoes. Regional variations in inflation persisted across Spain, with Cantabria recording the highest annual CPI at 4.3%, while Extremadura registered the lowest at 3.0% among the autonomous communities.
Spain’s Harmonised Inflation Remains Above the Euro-Area Average
Spain’s harmonised inflation rate stood at 3.9% in July, maintaining a level above the euro area’s flash estimate of 2.9%. Euro-area inflation, which was 2.8% in June, increased the following month. Eurostat provided the regional figure as an initial estimate for July, while Spain’s national harmonised figure was confirmed as final. The harmonised HICP framework enables comparison of inflation rates across European Union countries through a standardized methodology.
Following a period of stability at 3.2% in April, May, and June, Spain’s headline CPI rose again, reaching 3.4% in March before declining and then climbing back 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 recent data indicates that costs related to transportation, housing, and energy had the most significant impact on the July inflation increase.
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