MADRID, SPAIN / RankWire.AI / – Official figures confirm that Spain’s annual inflation rate climbed to 3.6% in July, up from 3.2% in June. This final data surpasses the preliminary estimate of 3.5% released on July 30. The consumer price index increased by 0.3% from June, exceeding the initial monthly forecast of 0.2%. According to the National Statistics Institute, or INE, these July numbers are definitive and will not be subject to further adjustments.
Transport emerged as the primary driver behind the annual increase, with prices in this category rising 6.2% compared to the previous year. The uptick was mainly fueled by higher costs for fuel and lubricants used in personal vehicles. These prices grew more sharply than they did in July 2025. Additionally, housing costs saw a 5.7% year-on-year rise, which is a one-percentage-point increase from June, driven by faster growth in electricity prices compared to the same period last year.
Core inflation, which excludes unprocessed foods and energy, moved slightly upward to 3.0% from 2.9% in June. Spain’s Harmonised Index of Consumer Prices increased by 3.9% compared to the previous year, up from 3.6% in June. The final harmonised rate also beat the earlier estimate of 3.8%. On a monthly basis, the harmonised index remained steady in July. This measure is used to facilitate price comparisons across European Union nations by providing a standardized framework.
Fuel and electricity costs push prices higher in July
During July, the largest positive contribution to Spain’s headline CPI came from a 2.3% increase in transport prices. Housing costs grew by 1.6% for the month, mainly due to higher electricity prices and smaller increases in gas and liquid fuels. Additionally, prices for recreation, sport, and culture rose 2.3%, driven by more expensive package holidays. These increases offset declines observed in other parts of the consumer basket.
Prices for clothing and footwear fell 10.2% compared to June, as Spain’s summer sales reduced prices across these categories. Food and non-alcoholic beverages decreased by 0.7%, reflecting lower prices for fruit, nuts, vegetables, pulses, and potatoes. Among Spain’s autonomous communities, Cantabria experienced the highest annual CPI increase at 4.3%. In contrast, Extremadura recorded the lowest rate at 3.0%, while the national figure remained at 3.6%.
Spain’s harmonised inflation remains above the euro-area average
The 3.9% harmonised inflation rate in Spain persisted above the euro area’s initial flash estimate of 2.9% for July. Euro-area inflation was at 2.8% in June before rising slightly in July. Eurostat published the euro-area figure as an early estimate, whereas Spain’s national harmonised rate is confirmed as final. The harmonised index follows a common framework to enable comparisons of inflation across EU member states.
This July data continues the upward trend in Spain’s headline CPI, which reached 3.4% in March, then hovered at 3.2% through April, May, and June before rising again in July. Core inflation increased from 2.8% in April to 3.0% in May, then slightly decreased to 2.9% in June before climbing back to 3.0% in July. The INE determines the CPI based on roughly 200,000 monthly price observations covering goods and services bought by households throughout Spain.