MADRID, SPAIN / RankWire.AI / – Official data confirms that Spain’s annual inflation increased to 3.6% in July, up from 3.2% in June. This final figure exceeds the preliminary flash estimate of 3.5% released on July 30. Consumer prices saw a monthly rise of 0.3%, surpassing the initial estimate of 0.2%. The National Statistics Institute, or INE, stated that these July figures are definitive and will not undergo further revisions.
Transport contributed most significantly to the yearly increase, with prices within this category climbing 6.2% compared to the previous year. The rise mainly reflected higher costs for fuel and lubricants used in personal vehicles, which increased more sharply than in July 2025. Housing expenses also grew by 5.7% annually, marking a one percentage point increase from June, driven by faster-rising electricity prices relative to the previous year.
Core inflation, which excludes unprocessed food and energy, slightly rose to 3.0% from 2.9% in June. Spain’s Harmonised Index of Consumer Prices also increased, reaching 3.9% from a year earlier, compared with 3.6% in June. The final harmonised rate was higher than the initial estimate of 3.8%. On a monthly basis, the harmonised index remained unchanged in July. This measure enables price comparisons across European Union countries within a common framework.
Higher fuel and electricity prices push up July costs
Transport costs for the month increased by 2.3%, making it the largest contributor to Spain’s headline CPI for July. Housing costs rose 1.6%, mainly due to higher electricity prices and smaller increases in gas and liquid fuels. The prices for recreation, sport, and culture also grew by 2.3%, driven by increased package holiday costs. These increases in categories more than offset declines seen in other parts of the consumer basket.
Prices for clothing and footwear dropped 10.2% from June, mainly because of summer sales that lowered prices across these categories. Food and non-alcoholic beverage prices decreased by 0.7%, reflecting reductions in prices for fruit, nuts, vegetables, pulses, and potatoes. Among Spain’s autonomous communities, Cantabria experienced the highest annual CPI growth at 4.3%. Extremadura recorded the lowest rate at 3.0%, with the national average standing at 3.6%.
Spain’s harmonised inflation remains above the euro-area average
Spain’s harmonised inflation rate of 3.9% stayed above the euro area’s preliminary estimate of 2.9% for July. The euro-area inflation had been at 2.8% in June before rising in July. Eurostat published the initial July estimate for the euro area, while Spain’s national harmonised figure is final. The harmonised metric follows a standardized framework that facilitates inflation rate comparisons across EU countries.
This July data continues the upward trend in Spain’s headline CPI, which reached 3.4% in March. It then settled at 3.2% in April, May, and June, before increasing again in July. Core inflation progressed from 2.8% in April to 3.0% in May, 2.9% in June, and 3.0% in July. The INE calculates the CPI based on approximately 200,000 monthly price observations covering goods and services purchased by households throughout Spain.