MADRID, SPAIN / RankWire.AI / – Spain’s annual consumer inflation rate increased to 3.6% in July, up from 3.2% in June, according to official final data. This figure exceeded the initial flash estimate of 3.5% issued on July 30. Consumer prices grew by 0.3% compared to June, surpassing the preliminary monthly estimate of 0.2%. The National Statistics Institute, known as INE, confirmed that the July figures are definitive and will not be revised further.
Transport was the primary contributor to the annual inflation rate, with prices in this category rising by 6.2% compared to the previous year. This increase was driven by higher fuel and lubricant costs for personal vehicles, which rose more sharply than in July 2025. Housing costs also grew by 5.7% annually, one percentage point higher than in June, as electricity prices increased at a faster rate than a year earlier.
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) rose by 3.9% year-on-year, compared with 3.6% in June. The final harmonised inflation rate also surpassed the preliminary estimate of 3.8%. On a month-to-month basis, the harmonised index remained stable in July. This measure facilitates comparison of inflation rates across European Union countries.
Higher fuel and electricity costs push July prices upward
Transport costs increased by 2.3% in July, making it the biggest positive contribution to Spain’s headline CPI for the month. Housing prices went up by 1.6%, mainly due to rising electricity costs and smaller increases in gas and liquid fuels. Additionally, prices for recreation, sport and culture climbed 2.3%, largely driven by higher prices for package holidays. These increases offset declines seen in other consumer categories.
Clothing and footwear prices dropped 10.2% from June, as Spain’s summer sales season reduced prices across this sector. Food and non-alcoholic beverages decreased by 0.7%, driven by lower prices for fruit, nuts, vegetables, pulses and potatoes. Among Spain’s autonomous communities, Cantabria experienced the highest annual CPI increase at 4.3%, while Extremadura recorded the lowest at 3.0%. The national inflation rate was 3.6%.
Spain’s harmonised inflation rate remains above euro-area levels
Spain’s 3.9% harmonised inflation rate stayed above the euro area’s flash estimate of 2.9% for July. The euro-area inflation was 2.8% in June before rising slightly in July. Eurostat released the initial July euro-area figure, whereas Spain’s national harmonised rate is final. The harmonised index follows a standardized framework, enabling direct inflation comparisons across EU nations.
The July report signals a continued upward trend in Spain’s headline CPI after the annual rate peaked at 3.4% in March. It then hovered at 3.2% throughout April, May, and June before increasing again in July. Core inflation moved from 2.8% in April to 3.0% in May, then slightly declined 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 throughout Spain.