MADRID, SPAIN / RankWire.AI / – p style=”text-align: justify;”Spain’s annual inflation rate climbed to 3.6% in July, up from 3.2% in June. The final data exceeded the preliminary estimate of 3.5% released at the end of July. Consumer prices also increased by 0.3% compared to the previous month, surpassing the earlier forecast of a 0.2% rise. Spain’s National Statistics Institute, or INE, confirmed the July figure in its latest consumer price report.
Transport expenses experienced the most significant year-over-year growth among key expenditure categories. Prices within this segment rose 6.2% from July 2025, driven primarily by increased fuel and lubricant costs. Housing costs also rose, with prices up 5.7% year-on-year, a full percentage point above June’s figure. Electricity costs contributed notably to this rise, alongside higher gas and liquid fuel prices during the month.
Excluding unprocessed food and energy, core inflation edged up to 3.0% from 2.9% in June. Spain’s harmonised inflation rate also climbed in July. The Harmonised Index of Consumer Prices increased by 3.9% from a year earlier, compared to 3.6% in June. The final reading surpassed the initial estimate of 3.8%. On a monthly basis, the harmonised index remained unchanged.
Transport and housing costs lead the monthly surge
Transport prices grew by 2.3% from June, accounting for the largest contribution to the monthly CPI increase. Housing costs also rose 1.6% over the same period, with electricity expenses playing a key role. The categories of recreation, sport, and culture increased by 2.3%, influenced by higher spending on package holidays amid peak summer travel, which affected household expenditure patterns reflected in the index.
Meanwhile, some segments experienced declines in July. Clothing and footwear prices dropped 10.2% from June, largely due to seasonal discounts. Food and non-alcoholic beverage prices decreased by 0.7% month-on-month, primarily driven by lower prices for fruit, nuts, vegetables, pulses, and potatoes. Regional inflation rates also varied, with Cantabria reporting the highest annual CPI at 4.3%, while Extremadura recorded the lowest at 3.0% among Spain’s autonomous communities.
Spain’s harmonised inflation rate remains above the euro-area average
The country’s 3.9% harmonised inflation rate continued to stay above the euro area’s preliminary 2.9% estimate for July. Euro-area inflation was 2.8% in June before rising the following month. Eurostat published the initial regional figure for July, while Spain’s national harmonised rate was finalized. The common HICP framework enables consistent inflation comparisons across EU member states using a standardized methodology.
Spain’s headline CPI has trended upward over recent months, standing at 3.2% in April, May, and June. It reached 3.4% in March, then eased before increasing again in July. Core inflation followed a narrower pattern, at 2.8% in April, 3.0% in May, 2.9% in June, and 3.0% in July. The latest data highlights the significant influence of rising transport, housing, and energy costs on July’s inflation figures.