MADRID, SPAIN / RankWire.AI / – The annual inflation rate in Spain increased to 3.6% in July, up from 3.2% in June. This final figure surpassed the initial 3.5% estimate issued at the end of July. Consumer prices experienced a monthly rise of 0.3%, compared to the earlier estimate of a 0.2% increase. Spain’s National Statistics Institute, or INE, verified the final July data through its most recent consumer price report.
Transport expenditures demonstrated the strongest year-over-year growth among the main expenditure categories. The category’s prices climbed 6.2% from July 2025, driven primarily by increases in fuel and lubricant costs. Housing prices also rose 5.7% compared to the previous year, a rate that is one percentage point higher than in June. The increase was influenced by electricity prices, along with higher gas and liquid fuel costs during the same month.
Core inflation, which excludes volatile unprocessed food and energy, edged up to 3.0% from 2.9% in June. Additionally, Spain’s harmonised inflation rate increased in July, with the Harmonised Index of Consumer Prices climbing 3.9% year-on-year, up from 3.6% in June. The finalized figure exceeded the preliminary estimate of 3.8%. On a monthly basis, the harmonised index remained unchanged.
Transport and housing sectors lead monthly inflation rise
Prices in the transport sector increased by 2.3% from June, making it the primary contributor to the monthly CPI growth. Housing costs also rose 1.6% over the same period, largely due to higher electricity prices. The recreation, sport, and culture sector saw a 2.3% increase in prices during July, with package holidays pushing this category higher amid increased summer travel demand impacting household spending patterns as reflected in the index.
Several other categories experienced declines in July. Clothing and footwear prices dropped 10.2% from June due to seasonal sales reducing retail prices. Food and non-alcoholic beverage prices fell 0.7%, mainly because of lower costs for fruit, nuts, vegetables, pulses, and potatoes. Regional inflation rates varied across Spain, with Cantabria registering the highest annual CPI at 4.3%, while Extremadura recorded the lowest at 3.0% among the autonomous communities.
Harmonised inflation in Spain remains above euro-area figures
Spain’s 3.9% harmonised inflation rate stayed above the euro area’s preliminary 2.9% estimate for July. The euro-area inflation had stood at 2.8% in June before rising the following month. Eurostat provided the regional figure as an initial estimate for July, while Spain’s national harmonised rate was confirmed as final. The common HICP framework enables inflation rate comparisons across European Union countries using a standardized method.
After remaining at 3.2% in April, May, and June, Spain’s headline CPI increased again in July, reaching 3.4% in March before easing and then rising. Core inflation followed a narrower trajectory, standing at 2.8% in April, 3.0% in May, 2.9% in June, and 3.0% in July. Recent data indicates that costs related to transport, housing, and energy significantly influenced the July inflation uptick.