MADRID, SPAIN / RankWire.AI / – The annual inflation rate in Spain climbed to 3.6% in July, up from 3.2% in June, according to the final official figures. This outcome exceeded the initial flash estimate of 3.5% released on July 30. Consumer prices saw a monthly increase of 0.3%, surpassing the preliminary estimate of 0.2%. The National Statistics Institute, or INE, confirmed that the July data are definitive and will not undergo further revisions.
Transport was the primary driver behind the yearly inflation rate, with costs in this sector rising by 6.2% compared to the previous year. This growth was mainly due to higher fuel and lubricant prices for personal vehicles, which increased more sharply than in July 2025. Housing expenses also rose by 5.7% annually, a full percentage point higher than in June, driven by faster-growing electricity prices and a smaller increase in gas and liquid fuel costs.
Core inflation, which excludes unprocessed food and energy products, edged up from 2.9% in June to 3.0%. Spain’s Harmonised Index of Consumer Prices (HICP) increased by 3.9% year-on-year, compared to 3.6% in June, with the final figure exceeding the preliminary estimate of 3.8%. On a monthly basis, the harmonised index remained unchanged in July. This index serves as a standard measure for comparing inflation rates across European Union countries.
Fuel and electricity costs drive July price increases
In July, transport costs rose by 2.3%, making it the largest contributor to Spain’s headline CPI for that month. Housing costs also saw a monthly increase of 1.6%, mainly due to rising electricity prices and smaller increases in gas and liquid fuels. Prices in recreation, sport and culture also went up by 2.3%, primarily driven by higher package holiday prices. These increases in certain categories compensated for declines in other parts of the consumer basket.
Clothing and footwear prices fell by 10.2% compared to June, largely influenced by Spain’s summer sales which reduced prices across the sector. Food and non-alcoholic beverage costs declined by 0.7%, reflecting lower prices for fruit, nuts, vegetables, pulses and potatoes. Among Spain’s autonomous communities, Cantabria experienced the highest annual CPI growth at 4.3%, while Extremadura recorded the lowest at 3.0%. The national inflation rate stood at 3.6%.
Spain’s harmonised inflation rate remains above the euro-area average
The harmonised inflation rate for Spain at 3.9% continued to outpace the euro area’s preliminary 2.9% estimate for July. Euro-area inflation was 2.8% in June before rising slightly in July. Eurostat published the initial July figure for the euro area, whereas Spain’s national harmonised rate is final. The harmonised index provides a common framework that facilitates comparison of inflation across European Union countries.
The July data highlight a recent upward trend in Spain’s headline CPI, which reached 3.4% in March. It then remained at 3.2% through April, May, and June before climbing again in July. Core inflation increased from 2.8% in April to 3.0% in May, then slightly dipped to 2.9% in June before reaching 3.0% in July. The INE calculates the CPI based on approximately 200,000 monthly price observations covering goods and services purchased by households nationwide.