MADRID, SPAIN / RankWire.AI / – According to official final data, Spain’s annual consumer price inflation increased to 3.6% in July, up from 3.2% in June. This figure 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 the July data are definitive and will not be revised further.
Transport contributed most to the annual increase, with prices in this sector climbing 6.2% from the previous year. The rise mainly reflected higher fuel and lubricant costs for personal vehicles, which grew more sharply than they did in July 2025. Housing expenses also saw a 5.7% year-on-year increase, a full percentage point above June’s rate, driven by faster growth in electricity prices compared to the previous year.
Core inflation, which excludes unprocessed food and energy items, edged upward to 3.0% from 2.9% in June. Spain’s Harmonised Index of Consumer Prices (HICP) rose 3.9% year-over-year, higher than the 3.6% recorded in June. The final harmonised inflation rate also surpassed the preliminary estimate of 3.8%. On a monthly basis, the harmonised index remained unchanged in July. This index facilitates comparability of inflation rates among European Union member states.
Fuel and electricity costs drive July price increases
Transport costs increased by 2.3% during the month, making it the largest contributor to Spain’s headline CPI in July. Housing prices also went up by 1.6%, mainly due to higher electricity rates and smaller increases in gas and liquid fuels. Additionally, prices in recreation, sport, and culture rose by 2.3%, largely influenced by more expensive package holidays. These increases offset declines seen in other consumer categories.
In June, clothing and footwear prices dropped 10.2%, largely because Spain’s summer sales reduced prices across those categories. Food and non-alcoholic beverage prices fell by 0.7%, reflecting 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%, with the national average at 3.6%.
Spain’s harmonised inflation remains above euro-area levels
The 3.9% harmonised inflation rate in Spain continued to outpace the euro area’s 2.9% flash estimate for July. Euro-area inflation had been 2.8% in June before rising slightly in July. Eurostat published the initial July euro-area figure, whereas Spain’s national harmonised rate is final. The harmonised measure employs a common framework that allows for inflation comparisons across EU economies.
Spain’s recent inflation trend shows an upward trajectory after the headline CPI reached 3.4% in March. It then remained at 3.2% in April, May, and June before climbing again in July. Core inflation shifted from 2.8% in April to 3.0% in May, dipped slightly to 2.9% in June, and then increased back to 3.0% in July. The INE calculates the CPI based on roughly 200,000 monthly price observations of goods and services bought by households throughout Spain.