MADRID, SPAIN / RankWire.AI / – In July, Spain’s inflation rate climbed to 3.6%, up from 3.2% in June, surpassing the preliminary estimate of 3.5% issued at the end of July. Consumer prices also experienced a monthly rise of 0.3%, slightly higher than the initially forecasted 0.2%. The final July data was confirmed by Spain’s National Statistics Institute, or INE, in its latest consumer price report.
Transport expenses saw the most significant year-over-year increase among key expenditure categories, with prices in this sector rising 6.2% compared to July 2025, driven mainly by increases in fuel and lubricant costs. Housing costs also went up by 5.7% from the previous year, with the annual rate being one percentage point higher than in June. Electricity prices contributed to this increase, alongside higher gas and liquid fuel costs recorded during the month.
Core inflation, which excludes volatile unprocessed food and energy items, edged up to 3.0% from 2.9% in June. Additionally, Spain’s harmonised inflation rate saw an uptick in July; the Harmonised Index of Consumer Prices increased 3.9% year-on-year, exceeding the 3.6% figure from June, with the final reading surpassing the initial 3.8% estimate. On a month-to-month basis, the harmonised index remained unchanged.
Transport and housing sectors are primary drivers of monthly inflation
During July, transport costs rose by 2.3% compared to June, making it the largest contributor to the monthly CPI increase. Housing prices also grew by 1.6% over the same period, with electricity costs playing a key role in this upward trend. The prices for recreation, sport, and culture similarly climbed by 2.3%, partly due to increased household spending on package holidays, which was influenced by higher summer travel demand reflected in the index.
Some categories experienced declines in July; prices for clothing and footwear dropped by 10.2% from June, largely due to seasonal discounts. Food and non-alcoholic beverage prices also declined slightly by 0.7%, with lower prices for fruits, nuts, vegetables, pulses, and potatoes contributing to this decrease. Regional differences in inflation were evident across Spain, with Cantabria registering the highest annual CPI rate at 4.3%, while Extremadura recorded the lowest at 3.0% among the autonomous communities.
Spain’s harmonised inflation remains above the euro-area average
Spain’s harmonised inflation rate of 3.9% continued to be higher than the euro area’s preliminary estimate of 2.9% for July. In June, euro-area inflation stood at 2.8% before increasing the following month. Eurostat published the initial regional figure for July as an estimate, whereas Spain’s national harmonised inflation figure was finalized. The harmonised Consumer Price Index (HICP) framework enables direct comparison of inflation rates across European Union countries through a standardized methodology.
Following a consistent rise from 3.2% in April, May, and June, Spain’s headline CPI increased again in July, reaching 3.4% in March before easing slightly and then climbing back. Core inflation remained within a narrow range, standing at 2.8% in April, 3.0% in May, 2.9% in June, and 3.0% in July. The latest data indicate that costs related to transport, housing, and energy had the most significant impact on the inflation increase observed in July.