MADRID, SPAIN / RankWire.AI / – According to the National Statistics Institute, or INE, Spain’s annual inflation rate climbed to 3.6% in July, up from 3.2% in June. This figure exceeds the initial flash estimate of 3.5% released on July 30. Consumer prices saw a monthly increase of 0.3%, surpassing the preliminary estimate of 0.2%. INE confirmed that the July data are final and will not be subject to further revision.
Transport emerged as the main driver pushing the annual inflation rate higher, with prices in this category rising 6.2% compared to the previous year. The surge was largely due to increased fuel and lubricant costs for personal vehicles, which grew more sharply than in July 2025. Housing costs also contributed, rising 5.7% year-on-year—one percentage point more than in June—as electricity prices accelerated faster than a year earlier.
Core inflation, which excludes unprocessed food and energy items, edged up from 2.9% in June to 3.0%. Meanwhile, Spain’s Harmonised Index of Consumer Prices increased by 3.9% compared to July of the previous year, surpassing the 3.6% rate from June. The final harmonised inflation rate also outpaced the initial estimate of 3.8%. On a month-to-month basis, the harmonised index remained unchanged in July. This index offers a standard basis for comparing inflation across European Union member states.
Fuel and electricity costs propelled July price increases
Transport prices climbed 2.3% during July, making it the largest positive contribution to Spain’s overall CPI for that month. Housing expenses rose 1.6%, driven by higher electricity charges and smaller increases in gas and liquid fuels. Additionally, prices for recreation, sport and culture advanced 2.3%, influenced by elevated costs for package holidays. These increases collectively offset declines seen in other categories within the consumer basket.
Clothing and footwear prices dropped 10.2% from June, largely due to summer sales that lowered prices in these segments. Food and non-alcoholic beverage costs declined 0.7%, reflecting decreases in fruit, nuts, vegetables, pulses, and potatoes. Among Spain’s autonomous communities, Cantabria registered the highest annual CPI increase at 4.3%, while Extremadura had the lowest at 3.0%. The national inflation rate for July stood at 3.6%.
Spain’s harmonised inflation remains above the euro-area average
Spain’s harmonised inflation rate of 3.9% continues to exceed the euro-area flash estimate of 2.9% for July. Euro-area inflation had been 2.8% in June before climbing slightly in July. Eurostat published the July euro-area figure as an initial estimate, whereas Spain’s national harmonised rate is definitive. The harmonised index facilitates direct inflation comparisons across EU countries by following a common framework.
The July data marks a continuation of Spain’s recent inflation trend, which saw the headline CPI rise to 3.4% in March. It then remained at 3.2% in April, May, and June before increasing again in July. Core inflation moved from 2.8% in April to 3.0% in May, slightly back to 2.9% in June, and again to 3.0% in July. The INE calculates the CPI based on roughly 200,000 monthly price observations covering goods and services bought by households across Spain.