MADRID, SPAIN / RankWire.AI / – Spain’s year-on-year inflation rate increased to 3.6% in July, up from 3.2% in June. The final figure surpassed the 3.5% preliminary estimate issued at the end of July. Consumer prices also grew by 0.3% compared to the previous month, whereas earlier estimates had indicated a 0.2% monthly rise. Spain’s National Statistics Institute, known as INE, confirmed the final July figures in its latest consumer price report.
Transport expenses experienced the most significant annual increase among the key expenditure categories. Prices within this sector climbed 6.2% from July 2025, primarily driven by higher fuel and lubricant costs. Housing costs rose 5.7% year-over-year, marking a one-percentage-point increase from June’s figure. Electricity prices contributed notably to this rise, alongside increases in gas and liquid fuel costs during the same period.
Excluding unprocessed food and energy, core inflation edged up to 3.0% from 2.9% in June. Spain’s harmonised inflation rate also rose in July, with the Harmonised Index of Consumer Prices increasing by 3.9% from a year earlier, compared to 3.6% in June. The final data exceeded the preliminary estimate of 3.8%. On a monthly basis, the harmonised index remained unchanged.
Transport and housing sectors propel monthly inflation
Transport costs experienced a 2.3% increase from June, accounting for the largest contribution to the monthly CPI growth. Housing prices grew by 1.6% over the same timeframe, with electricity costs being a major factor in this upward movement. The prices for recreation, sport, and culture also rose by 2.3% in July. The surge in package holidays, driven by heightened summer travel demand, influenced this category’s increase within household spending patterns reflected in the index.
Certain categories, however, recorded declines in July. Clothing and footwear prices decreased by 10.2% from June, due to seasonal discounts reducing retail prices. Food and non-alcoholic beverage prices fell by 0.7% month-over-month, with declines in fruit, nuts, vegetables, pulses, and potatoes contributing to the decrease. Regional inflation figures varied across Spain, with Cantabria registering the highest annual CPI rate at 4.3%, while Extremadura reported the lowest at 3.0% among autonomous communities.
Harmonised inflation rate remains above euro-area average
Spain’s 3.9% harmonised inflation rate continued to outpace the euro area’s flash estimate of 2.9% for July. Euro-area inflation was 2.8% in June before climbing the following month. Eurostat published this initial regional figure for July. Spain’s national harmonised reading was finalized. The common HICP framework facilitates comparison of inflation rates across European Union countries through a standardized methodology.
In recent months, Spain’s headline CPI has trended higher, after holding at 3.2% in April, May, and June. The rate peaked at 3.4% in March before easing and then increasing again in July. Core inflation followed a narrower pattern, at 2.8% in April, 3.0% in May, 2.9% in June, and 3.0% in July. The latest data indicates that the primary factors influencing July’s inflation increase were costs related to transport, housing, and energy.