MADRID, SPAIN / RankWire.AI / – According to the final official figures, Spain’s annual consumer price inflation reached 3.6% in July, up from 3.2% in June, exceeding the preliminary estimate of 3.5% issued on July 30. The data also shows that consumer prices grew by 0.3% from June, which is higher than the initially forecasted monthly increase of 0.2%. The National Statistics Institute, known as INE, confirmed that these July numbers are final and will not be subject to any further revision.
Transport emerged as the primary contributor to the annual inflation rate, with prices within this sector rising by 6.2% compared to the previous year. This surge was mainly driven by increased costs of fuel and lubricants for personal vehicles, which grew more sharply than in July 2025. Housing expenses also saw a 5.7% rise year-on-year, one percentage point above June’s rate, owing to faster-growing electricity prices compared to the same period last year.
Core inflation, which excludes unprocessed food and energy products, inched upward to 3.0% from 2.9% recorded in June. Additionally, Spain’s Harmonised Index of Consumer Prices (HICP) increased by 3.9% from the previous year, surpassing the 3.6% figure reported in June. The final harmonised rate was also higher than the initial estimate of 3.8%. On a monthly basis, the harmonised index remained flat in July. This measure is crucial as it provides a standardized basis for comparing price levels across European Union countries.
Rising fuel and electricity costs drive July’s inflation figures
During July, transportation-related prices increased by 2.3%, making it the largest positive contribution to Spain’s overall CPI for that month. Housing costs went up by 1.6% mainly due to higher electricity rates and smaller increases in gas and liquid fuels. Prices in recreation, sport, and culture also rose by 2.3%, primarily because of increased prices for package holidays. These increases more than offset declines in other areas of the consumer basket, resulting in an overall higher inflation rate.
Prices for clothing and footwear dropped by 10.2% from June, reflecting the impact of summer sales in Spain that lowered prices across the category. Meanwhile, food and non-alcoholic beverage prices fell by 0.7%, driven by lower prices for fruit, nuts, vegetables, pulses, and potatoes. Among the autonomous communities, Cantabria experienced the highest annual CPI increase at 4.3%, while Extremadura recorded the lowest at 3.0%. The national average stood at 3.6%.
Spain’s harmonised inflation remains above euro-area levels
Spain’s harmonised inflation rate of 3.9% continued to outpace the euro area’s flash estimate of 2.9% for July. In June, euro-area inflation was at 2.8% before rising slightly in July. Eurostat published the initial July euro-area figure, whereas Spain’s national harmonised rate is considered final. The harmonised inflation measure provides a common framework that enables meaningful comparisons across European Union economies.
This July data signals a continued upward trend in Spain’s headline CPI after the rate hit 3.4% in March, then stabilized at 3.2% through April, May, and June, before climbing again in July. Core inflation figures moved from 2.8% in April to 3.0% in May, then slightly decreased to 2.9% in June before increasing again to 3.0% in July. The INE compiles the CPI based on roughly 200,000 monthly price observations across goods and services purchased by households all over Spain.