MADRID, SPAIN / RankWire.AI / – The National Statistics Institute, or INE, announced that Spain’s annual inflation rate reached 3.6% in July, up from 3.2% in June. This figure is the final official number and aligns with the earlier 3.5% flash estimate released on July 30. Consumer prices saw a monthly increase of 0.3%, surpassing the preliminary estimate of 0.2% for July. The INE emphasized that these July figures are definitive and will not be revised further.
Transport was the primary driver behind the annual inflation rate, with costs in this sector rising by 6.2% compared to the previous year. The escalation was mainly due to higher fuel and lubricant prices for private vehicles, which increased more sharply than they did in July 2025. Housing expenses also climbed 5.7% annually, one percentage point higher than June, as electricity prices accelerated faster than a year earlier.
Core inflation, which excludes volatile unprocessed food and energy items, edged upward to 3.0% from 2.9% in June. Spain’s Harmonised Index of Consumer Prices (HICP) increased by 3.9% from July 2022, compared to 3.6% in June. The final harmonised rate also exceeded the initial estimate of 3.8%. On a month-to-month basis, the HICP remained unchanged in July. This index provides a standardized basis for price comparisons across European Union nations.
Fuel and electricity costs boost July’s consumer prices
During July, monthly transportation costs rose by 2.3%, making it the largest positive contributor to Spain’s overall CPI for the month. Housing prices increased by 1.6% due to higher electricity rates and smaller hikes in gas and liquid fuels. The prices for recreation, sport, and culture also increased by 2.3%, driven by higher costs for package holidays. These increases offset declines observed in other categories within the consumer basket.
Prices for clothing and footwear fell 10.2% from June, reflecting the impact of Spain’s summer sales which reduced prices in that sector. Food and non-alcoholic beverages experienced a 0.7% decrease, primarily because of lower prices for fruit, nuts, vegetables, pulses, and potatoes. Among Spain’s autonomous communities, Cantabria recorded the highest annual CPI increase at 4.3%, while Extremadura registered the lowest at 3.0%. The national inflation rate was 3.6%.
Spain’s harmonised inflation rate remains above euro-area averages
Spain’s harmonised inflation stood at 3.9% in July, remaining above the euro area’s flash estimate of 2.9%. In June, the euro area inflation was 2.8% before rising slightly in July. Eurostat published the initial estimate for the euro area’s July inflation, whereas Spain’s national HICP figure is final. The harmonised measure facilitates direct comparisons of inflation rates across EU member states.
The July data continued a recent upward trend in Spain’s headline CPI, which reached 3.4% in March. It then held steady at 3.2% through April, May, and June before climbing again in July. Core inflation moved from 2.8% in April to 3.0% in May, then to 2.9% in June, and back to 3.0% in July. The INE calculates the CPI based on approximately 200,000 monthly price observations covering a broad range of goods and services purchased by households across Spain.