MADRID, SPAIN / RankWire.AI / – Official data confirms that Spain’s annual consumer price inflation reached 3.6% in July, up from 3.2% in June. This figure exceeds the preliminary estimate of 3.5% released on July 30. Consumer prices saw a monthly increase of 0.3%, which is higher than the initial estimate of 0.2%. The National Statistics Institute, or INE, stated that the July data is final and will not be revised further.
Transport contributed most significantly to the annual inflation rate, with prices in this sector rising by 6.2% compared to the previous year. This growth was driven by increased costs for fuel and lubricants for personal vehicles, with prices climbing more sharply than in July 2025. Housing costs also rose by 5.7% year-on-year, surpassing June’s rate by one percentage point, as electricity prices increased at a faster pace than the previous year.
Core inflation, which excludes unprocessed food and energy items, edged upward to 3.0% from 2.9% in June. Meanwhile, Spain’s Harmonised Index of Consumer Prices (HICP) increased by 3.9% year-over-year, compared to 3.6% in June. The final harmonised rate also surpassed the initial estimate of 3.8%. On a month-to-month basis, the harmonised index remained unchanged in July. This measure is designed to facilitate price comparisons across European Union countries by providing a standardized framework.
Rise in fuel and electricity prices drives July inflation
During July, transport costs increased by 2.3%, making it the largest positive contribution to Spain’s headline CPI for that month. Housing costs went up by 1.6%, primarily due to higher electricity prices and smaller increases in gas and liquid fuels. Prices for recreation, sport, and culture also rose by 2.3%, mainly driven by higher costs for package holidays. These increases collectively offset declines in other consumer categories.
Prices for clothing and footwear dropped 10.2% from June, influenced by summer sales reducing prices across the category. Food and non-alcoholic beverages experienced a 0.7% decline, driven by lower prices for fruit, nuts, vegetables, pulses, and potatoes. Among Spain’s autonomous communities, Cantabria registered the highest annual CPI increase at 4.3%. Extremadura recorded the lowest rate among the regions at 3.0%, while the national figure stood at 3.6%.
Spain’s harmonised inflation remains above euro-area average
The 3.9% harmonised inflation rate in Spain continued to be higher than the euro area’s flash estimate of 2.9% for July. In June, euro-area inflation was 2.8%, before rising in July. Eurostat reported the initial July euro-area figure, whereas Spain’s national harmonised rate is definitive. The harmonised index employs a common methodology, allowing inflation rates to be compared across EU member states.
The July data reflects a recent upward trend in Spain’s headline CPI, which reached 3.4% in March. It then held steady at 3.2% in April, May, and June before increasing again in July. Core inflation grew 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 approximately 200,000 monthly price observations, covering goods and services purchased by households across Spain.