MADRID, SPAIN / RankWire.AI / – According to final official figures, Spain’s annual inflation increased to 3.6% in July from 3.2% in June. This outcome exceeded the initial flash estimate of 3.5% released on July 30. Consumer prices rose by 0.3% compared to June, surpassing the preliminary monthly estimate of 0.2%. The National Statistics Institute, or INE, confirmed that these July numbers are definitive and will not be subject to further updates.
Transport was the primary factor behind the annual increase, with costs in this category climbing 6.2% year-over-year. The rise was driven by higher fuel and lubricant prices for personal vehicles, which grew more sharply than they did in July 2025. Housing expenses also rose 5.7% annually, a full percentage point above June’s rate, mainly due to faster-growing electricity prices compared to the previous year.
Core inflation, which excludes unprocessed food and energy, edged upward to 3.0% from 2.9% in June. Spain’s Harmonised Index of Consumer Prices (HICP) increased by 3.9% year-over-year, compared to 3.6% in June. The final HICP figure also surpassed the initial estimate of 3.8%. On a monthly basis, the harmonised index remained unchanged in July. This measure facilitates comparison of inflation rates across European Union member states.
Fuel and electricity costs boost July inflation
Transport costs rose 2.3% in July, making it the largest contributor to Spain’s overall CPI increase for the month. Housing prices increased by 1.6%, mainly due to higher electricity bills and smaller rises in gas and liquid fuels. Prices for recreation, sport, and culture also climbed 2.3%, primarily driven by more expensive package holidays. These increases offset declines seen in other areas of consumer spending.
Clothing and footwear prices fell 10.2% compared to June, influenced by summer sales that reduced prices across the category. Food and non-alcoholic beverage costs 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 growth at 4.3%, while Extremadura recorded the lowest at 3.0%. The national inflation rate for July was 3.6%.
Spain’s harmonised inflation rate remains above euro-area levels
Spain’s harmonised inflation rate of 3.9% in July continued to outpace the euro area’s initial flash estimate of 2.9%. Euro-area inflation was 2.8% in June before rising slightly in July. Eurostat issued the July euro-area figure as an early estimate, while Spain’s national harmonised rate is confirmed as final. The harmonised index uses a standardized framework to enable inflation comparisons across EU countries.
The July figures mark a continuation of Spain’s recent inflation trend, which saw the headline CPI reach 3.4% in March before declining to 3.2% in April, May, and June. The rate then increased again in July. Core inflation shifted from 2.8% in April to 3.0% in May, 2.9% in June, and 3.0% in July. The INE’s calculation of the CPI is based on around 200,000 monthly price observations covering goods and services purchased by households across Spain.