MADRID, SPAIN / RankWire.AI / – The annual inflation rate in Spain increased to 3.6% in July, up from 3.2% in June, with the final figure surpassing the 3.5% preliminary estimate released at the end of July. Consumer prices also rose by 0.3% compared to the previous month, exceeding the earlier estimate of a 0.2% monthly increase. The latest consumer price report from Spain’s National Statistics Institute, or INE, confirmed these final July figures.
Transport expenses experienced the strongest yearly growth among major expenditure categories, with prices in this sector climbing 6.2% from July 2025, driven primarily by increased fuel and lubricant costs. Housing costs also rose by 5.7% year-on-year, marking a one percentage point increase over June’s reading. The uptick was partly due to electricity prices, while gas and liquid fuel prices also climbed during the month.
Excluding unprocessed food and energy, core inflation increased slightly from 2.9% in June to 3.0%. Spain’s harmonised inflation rate similarly moved upward in July, with the Harmonised Index of Consumer Prices rising 3.9% from the previous year, compared to 3.6% in June. The final harmonised figure beat the initial estimate of 3.8%. On a monthly basis, the harmonised index remained unchanged.
Transport and Housing Lead Monthly Rise
In July, transport prices increased by 2.3% from June, making the largest contribution to the monthly CPI increase. Meanwhile, housing costs went up by 1.6%, largely due to higher electricity prices. Prices for recreation, sport and culture also rose 2.3%, with summer travel demand boosting household spending in that category.
Some sectors experienced declines during the same period, such as clothing and footwear, which dropped 10.2% from June because seasonal discounts lowered retail prices. Food and non-alcoholic beverage prices decreased by 0.7%, largely due to lower costs for fruit, nuts, vegetables, pulses, and potatoes. Regional inflation differences persisted across Spain, with Cantabria recording the highest annual CPI rate at 4.3% and Extremadura at the lowest at 3.0% among autonomous communities.
Spain’s Harmonised Rate Remains Above Eurozone
Spain’s 3.9% harmonised inflation rate remained above the euro area’s initial estimate of 2.9% for July, with the euro area’s inflation having been 2.8% in June before rising the following month. Eurostat published the regional estimate for July as an initial figure, while Spain’s national harmonised rate was finalized. The common HICP framework enables comparison of inflation across EU economies using a standardized method.
After remaining steady at 3.2% in April, May, and June, Spain’s headline CPI edged higher in recent months, reaching 3.4% in March before easing and then climbing again in July. Core inflation fluctuated within a narrower range, standing at 2.8% in April, 3.0% in May, 2.9% in June, and 3.0% in July. Recent data indicate that transport, housing, and energy-related costs contributed most significantly to the July inflation increase.