MADRID, SPAIN / RankWire.AI / – According to finalized official figures, Spain’s annual consumer price inflation increased to 3.6% in July, up from 3.2% in June. This figure exceeded the preliminary 3.5% estimate announced on July 30. Consumer prices saw a 0.3% rise compared to June, surpassing the early monthly forecast of 0.2%. The National Statistics Institute, or INE, confirmed that the July data are definitive and will not undergo further revisions.
In July, transport emerged as the leading factor pushing the annual inflation rate upward, with prices within this sector rising 6.2% year-on-year. The increase was driven by higher costs for fuel and lubricants used in personal vehicles, which grew more quickly than in July 2025. Housing expenses also climbed 5.7% annually, one percentage point higher than in June, as electricity prices accelerated faster than a year earlier.
Excluding unprocessed food and energy products, core inflation edged up from 2.9% in June to 3.0%. Meanwhile, Spain’s Harmonised Index of Consumer Prices (HICP) increased by 3.9% from the previous year, exceeding June’s 3.6%. The final harmonised rate also outperformed the initial estimate of 3.8%. On a month-to-month basis, the harmonised index remained unchanged in July. This measure enables direct price comparisons across European Union nations.
Fuel and electricity costs drive July price increases
During July, transport costs rose by 2.3%, making it the largest positive contribution to Spain’s overall CPI for the month. Housing costs increased 1.6%, mainly due to higher electricity prices and smaller hikes in gas and liquid fuels. Additionally, prices for recreation, sport, and culture climbed 2.3%, primarily driven by increased prices for package holidays. These increases collectively offset declines in other consumer categories.
Prices for clothing and footwear decreased by 10.2% compared to June, largely due to Spain’s summer sales reducing prices across these categories. Food and non-alcoholic beverages fell 0.7%, reflecting lower prices for fruit, nuts, vegetables, pulses, and potatoes. Among Spain’s autonomous communities, Cantabria registered the highest annual CPI rise at 4.3%, whereas Extremadura experienced the lowest rate at 3.0%. The national figure stood at 3.6%.
Spain’s harmonised inflation remains above euro-area levels
Spain’s harmonised inflation rate of 3.9% continued to surpass the euro area’s flash estimate of 2.9% for July. Euro-area inflation stood at 2.8% in June before climbing slightly in July. Eurostat released the initial July euro-area figure, while Spain’s national harmonised rate is final. The harmonised index employs a common framework to facilitate inflation comparisons among European Union countries.
The July data mark a continued increase in Spain’s headline CPI after reaching 3.4% in March. The rate then remained at 3.2% in April, May, and June before advancing again in July. Core inflation moved from 2.8% in April to 3.0% in May, then dipped slightly to 2.9% in June, before rising back to 3.0% in July. The INE calculates the CPI based on roughly 200,000 monthly price observations covering goods and services purchased by households throughout Spain.