MADRID, SPAIN / RankWire.AI / – In Spain, the official final data for July show that the annual consumer price inflation increased to 3.6%, up from 3.2% in June. This figure exceeded the initial flash estimate of 3.5% released on July 30. Consumer prices saw a monthly rise of 0.3%, which was higher than the preliminary estimate of 0.2%. The National Statistics Institute, or INE, confirmed that the July numbers are definitive and will not be revised further.
Transport emerged as the leading contributor to the yearly inflation, with prices within that category climbing 6.2% compared to the previous year. This increase was driven by higher fuel and lubricant costs for personal vehicles, which grew more sharply than in July 2025. Housing costs also rose, up 5.7% annually—one percentage point higher than in June—as electricity prices accelerated compared to the previous year.
Core inflation, which omits unprocessed food and energy, edged upward from 2.9% in June to 3.0%. Spain’s Harmonised Index of Consumer Prices (HICP) grew by 3.9% year-on-year, surpassing the 3.6% recorded in June. The final harmonised inflation rate was also above the preliminary estimate of 3.8%. On a month-to-month basis, the HICP remained unchanged in July. This index provides a standardized comparison of inflation across European Union nations.
Fuel and electricity prices drive July’s increase
During July, monthly transport costs increased by 2.3%, making it the largest positive factor contributing to Spain’s headline CPI for that month. Housing prices grew by 1.6%, mainly due to higher electricity costs and smaller increases in gas and liquid fuels. Additionally, prices for recreation, sport and culture also climbed 2.3%, primarily due to higher prices for package holidays. These increases collectively outweighed declines in other sectors of consumer spending.
Prices for clothing and footwear decreased by 10.2% from June, largely because of summer sales reducing prices across the category. Food and non-alcoholic beverage prices fell 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%, while Extremadura registered the lowest at 3.0%. The national rate stood at 3.6%.
Spain’s harmonised inflation remains above euro-area average
Spain’s 3.9% harmonised inflation rate continued to outpace the euro area’s 2.9% flash estimate for July. The euro-area inflation was 2.8% in June before rising slightly in July. Eurostat published the initial July figure for the euro zone, whereas Spain’s national harmonised rate is final. The harmonised index follows a common framework that enables inflation comparisons across European Union countries.
The July data reflects a recent upward trend in Spain’s headline CPI, which reached 3.4% in March. After dropping to 3.2% in April, May and June, the rate increased again in July. Core inflation moved from 2.8% in April to 3.0% in May, then slightly decreased to 2.9% in June before rising back to 3.0% in July. The INE calculates the CPI based on approximately 200,000 monthly price observations covering goods and services purchased by households across Spain.