MADRID, SPAIN / RankWire.AI / – The National Statistics Institute, known as INE, announced that Spain’s annual inflation rate increased to 3.6% in July, up from 3.2% in June. The final figure surpassed the 3.5% preliminary estimate issued at the end of July. Consumer prices saw a monthly rise of 0.3%, exceeding the earlier estimate of a 0.2% increase. INE confirmed these July data in its latest consumer price report.
Transport expenses experienced the most significant yearly growth among main expenditure categories. Prices in this segment increased by 6.2% compared to July 2025, driven primarily by higher fuel and lubricant costs. Housing costs also rose, increasing 5.7% year-over-year. This annual rate was one percentage point higher than in June. The rise was partly due to electricity prices, with gas and liquid fuel costs also climbing during the month.
Core inflation, which excludes unprocessed food and energy, edged up to 3.0% from 2.9% in June. The harmonised inflation rate in Spain also increased in July, with the Harmonised Index of Consumer Prices (HICP) climbing 3.9% from the previous year, compared to 3.6% in June. The final figure surpassed the initial estimate of 3.8%. On a monthly basis, however, the harmonised index remained unchanged.
Transport and housing sectors contribute most to monthly inflation rise
The biggest monthly contribution to the Consumer Price Index (CPI) increase came from transport costs, which rose by 2.3% compared to June. Housing prices also grew by 1.6%, mainly influenced by higher electricity charges. Additionally, prices for recreation, sport and culture increased by 2.3% in July. The demand for summer travel, reflected in household spending patterns, pushed up package holiday prices within this category.
Several sectors experienced declines in July. Prices for clothing and footwear decreased by 10.2% from June, largely due to seasonal discounts. Food and non-alcoholic beverages fell by 0.7%, with lower prices for fruit, nuts, vegetables, pulses, and potatoes contributing to this decline. Inflation rates across Spain varied regionally, with Cantabria recording the highest annual CPI at 4.3%, while Extremadura posted the lowest at 3.0% among the autonomous communities.
Spain’s harmonised inflation rate remains above the euro-area average
Spain’s 3.9% harmonised inflation rate continued to stay above the euro area’s preliminary estimate of 2.9% for July. In June, the euro-area inflation was 2.8% before rising in the following month. Eurostat released this regional figure as an initial estimate for July, while Spain’s national harmonised figure was finalized. The harmonised index (HICP) framework permits comparison of inflation across EU nations using a standardized method.
Spain’s overall CPI has trended higher in recent months, after remaining at 3.2% in April, May, and June. The rate peaked at 3.4% in March before easing and then climbing again in July. Core inflation displayed a narrower fluctuation, recorded at 2.8% in April, 3.0% in May, 2.9% in June, and 3.0% in July. The latest data indicate that transportation, housing, and energy-related costs significantly contributed to the inflation increase in July.