MADRID, SPAIN / RankWire.AI / – Spain’s annual consumer price inflation climbed to 3.6% in July, up from 3.2% in June, according to official final data. This figure exceeds the 3.5% flash estimate issued on July 30. Prices paid by consumers rose 0.3% from June, surpassing the earlier monthly estimate of 0.2%. The National Statistics Institute, or INE, confirmed that these July numbers are definitive and will not be revised further.
Transport contributed most to the annual increase, with prices in this sector rising 6.2% from last year. The surge was driven by higher fuel and lubricant costs for personal vehicles. These prices increased more sharply than in July 2025. Housing costs also climbed, up 5.7% annually, which is a one percentage point rise from June. Electricity prices grew faster than a year earlier, pushing housing expenses higher.
Core inflation, which excludes unprocessed food and energy, edged up from 2.9% in June to 3.0%. Spain’s Harmonised Index of Consumer Prices (HICP) increased by 3.9% year-on-year, compared to 3.6% in June. The final harmonised rate was above the initial estimate of 3.8%. On a monthly basis, the harmonised index remained unchanged in July. This index provides a standardized basis for comparing prices across European Union countries.
Fuel and electricity costs drive July price increases
Transport prices in July rose by 2.3%, making it the largest contributor to Spain’s headline CPI for the month. Housing costs increased 1.6%, mainly due to higher electricity charges and smaller hikes in gas and liquid fuels. Prices for recreation, sport, and culture also went up 2.3%, largely because of increased package holiday prices. These increases outweighed price declines in other areas of consumer spending.
Prices for clothing and footwear fell 10.2% from June, thanks to summer sales reducing prices. Food and non-alcoholic beverages dropped 0.7%, as prices for fruit, nuts, vegetables, pulses, and potatoes declined. Among Spain’s autonomous communities, Cantabria experienced the highest annual CPI increase at 4.3%. Extremadura registered the lowest rate at 3.0%. The national average was 3.6%.
Spain’s harmonised inflation remains above euro-area levels
Spain’s 3.9% harmonised inflation rate continued to stay above the euro area’s preliminary 2.9% estimate for July. Euro-area inflation was 2.8% in June and rose slightly in July. Eurostat released the July euro-area figure as an initial estimate, while Spain’s national harmonised rate is final. The harmonised measure allows comparison of inflation rates across EU economies using a common framework.
The July data adds to Spain’s recent trend of rising headline CPI, after the rate hit 3.4% in March. It then held steady at 3.2% through April, May, and June before increasing again in July. Core inflation moved from 2.8% in April to 3.0% in May, then 2.9% in June, and back to 3.0% in July. The INE calculates the CPI based on roughly 200,000 monthly price observations covering goods and services bought by households across Spain.