MADRID, SPAIN / RankWire.AI / – Official figures confirm that Spain’s annual inflation rate reached 3.6% in July, up from 3.2% in June. The final data, released by the National Statistics Institute, or INE, surpassed the preliminary estimate of 3.5% issued on July 30. Consumer prices saw a monthly rise of 0.3%, exceeding the initial estimate of 0.2%. The INE stated that these July numbers are definitive and will not be revised further.
The largest upward influence on the annual inflation rate was from transport, with prices within this category increasing by 6.2% compared to the previous year. This surge was mainly driven by higher costs for fuel and lubricants used in personal vehicles, with prices rising more sharply than in July 2025. Additionally, housing expenses grew by 5.7% year-on-year, one percentage point higher than June, as electricity prices accelerated faster than they did in the same month last year.
Core inflation, which excludes volatile unprocessed food and energy items, increased slightly to 3.0% from 2.9% in June. The Harmonised Index of Consumer Prices for Spain rose by 3.9% from July 2022, compared to 3.6% in June. The final harmonised inflation rate also went beyond the initial estimate of 3.8%. On a month-to-month basis, the harmonised index remained steady in July. This measure is used to facilitate price comparisons across EU member states by providing a standardized inflation metric.
Rising fuel and electricity costs push July prices higher
Transport costs increased by 2.3% in July, making it the largest positive contribution to Spain’s overall CPI for the month. Housing costs saw a 1.6% increase, mainly due to higher electricity prices and smaller rises in gas and liquid fuels. Additionally, prices in recreation, sport, and culture sectors grew by 2.3%, largely driven by increased package holiday costs. These increases more than offset declines in other parts of the consumer basket.
Prices for clothing and footwear dropped 10.2% from June, as Spain’s summer sales led to widespread discounts. Food and non-alcoholic beverages prices fell by 0.7%, mainly due to lower costs for fruit, nuts, vegetables, pulses, and potatoes. Among Spain’s autonomous communities, Cantabria experienced the highest annual CPI increase at 4.3%. Conversely, Extremadura recorded the lowest rate at 3.0%, while the national figure stood at 3.6%.
Spain’s harmonised inflation rate remains above the euro-area average
In July, Spain’s 3.9% harmonised inflation rate stayed above the euro area’s preliminary estimate of 2.9%. Euro-area inflation was 2.8% in June before rising slightly in July. Eurostat published the euro-area’s July figure as an initial estimate, whereas Spain’s national harmonised rate is confirmed as final. The harmonised index provides a standardized approach for comparing inflation rates across European Union economies.
The July data indicate a continuation of the recent upward trend in Spain’s headline CPI after reaching 3.4% in March. It then held steady at 3.2% through April, May, and June before climbing again in July. Core inflation moved from 2.8% in April to 3.0% in May, then decreased slightly to 2.9% in June before rising back to 3.0% in July. The INE calculates the CPI using approximately 200,000 monthly price observations that cover goods and services purchased by households across Spain.