MADRID, SPAIN / RankWire.AI / – Official data from the National Statistics Institute, or INE, indicates that Spain’s annual consumer price inflation climbed to 3.6% in July, up from 3.2% in June. This figure exceeds the earlier flash estimate of 3.5% released on July 30. Prices for consumers rose by 0.3% compared to June, surpassing the preliminary monthly forecast of 0.2%. INE confirmed that the July numbers are final and will not be subject to further revision.
Transport was the primary contributor to the yearly increase, with prices within this sector rising 6.2% compared to the previous year. The growth was driven mainly by higher costs for fuel and lubricants for personal vehicles, with these prices rising more sharply than in July 2025. Housing expenses grew by 5.7% annually, a full percentage point above June’s rate, as electricity costs increased more rapidly than in the same period last year.
Core inflation, which excludes unprocessed food and energy products, slightly increased from 2.9% in June to 3.0%. Spain’s Harmonised Index of Consumer Prices (HICP) recorded a 3.9% rise from July 2022, compared to 3.6% in June. The final harmonised rate also surpassed the initial estimate of 3.8%. On a monthly basis, the HICP remained unchanged in July. This index facilitates cross-country price comparisons within the European Union.
Higher fuel and electricity prices influence July inflation
During July, the most significant positive contribution to Spain’s headline CPI came from a 2.3% increase in transport costs. Housing costs also rose by 1.6% month-on-month, mainly due to higher electricity prices and smaller increases in gas and liquid fuels. Additionally, prices for recreation, sport, and culture climbed 2.3%, mainly driven by more expensive package holidays. These increases overall offset declines observed in other categories of consumer spending.
In June, prices for clothing and footwear dropped 10.2% as Spain’s summer sales led to significant discounts in that sector. Meanwhile, food and non-alcoholic beverage prices fell 0.7%, reflecting lower costs for fruit, nuts, vegetables, pulses, and potatoes. Among Spain’s autonomous communities, Cantabria experienced the highest annual CPI increase at 4.3%, while Extremadura recorded the lowest at 3.0%. The national inflation rate stood at 3.6%.
Spain’s harmonised inflation remains above euro-area figures
In July, Spain’s harmonised inflation rate of 3.9% stayed above the euro area’s initial estimate of 2.9%. Euro-area inflation, which was 2.8% in June, increased slightly in July. Eurostat published the euro-area figure as an initial estimate, whereas Spain’s national harmonised rate is considered final. The harmonised index is designed to enable consistent inflation comparisons across European Union member states.
The July data continues a recent upward trend in Spain’s headline CPI, which reached 3.4% in March. After dropping to 3.2% in April, May, and June, the inflation rate increased again in July. Core inflation followed a similar pattern, moving from 2.8% in April to 3.0% in May, then slightly decreasing to 2.9% in June before climbing back to 3.0% in July. The INE calculates the CPI based on approximately 200,000 monthly price observations covering goods and services purchased by households across Spain.