MADRID, SPAIN / RankWire.AI / – Spain’s year-on-year inflation rate climbed to 3.6% in July, up from 3.2% in June. The final figure surpassed the preliminary estimate of 3.5% released at the end of July. Consumer prices also increased by 0.3% from the previous month, slightly higher than the earlier forecast of a 0.2% rise. Spain’s National Statistics Institute, or INE, confirmed the July data in its latest consumer price report.
Transport expenses experienced the most significant annual increase among the main expenditure categories. Prices in this sector rose 6.2% compared to July 2025, driven mainly by higher fuel and lubricant costs. Housing costs went up 5.7% year-over-year, marking a one percentage point increase from June. Electricity prices contributed notably to this rise, along with increased gas and liquid fuel costs during the month.
Core inflation, which excludes unprocessed food and energy, climbed to 3.0% from 2.9% in June. Spain’s harmonised inflation rate also increased in July. The Harmonised Index of Consumer Prices rose 3.9% from a year earlier, compared to 3.6% in June. The final figure was above the initial estimate of 3.8%. On a monthly basis, the harmonised index remained unchanged.
Transport and housing contribute most to monthly price increases
Transport prices jumped 2.3% from June, making the largest contribution to the monthly CPI rise. Housing costs rose 1.6%, mainly due to higher electricity prices. Recreation, sport, and culture also saw a 2.3% increase during July. Package holidays played a role in this growth, as summer travel boosted household spending reflected in the index.
Some categories saw declines in July. Clothing and footwear prices dropped 10.2% compared to June, thanks to seasonal discounts. Food and non-alcoholic beverage prices decreased by 0.7%, mainly due to lower prices for fruit, nuts, vegetables, pulses, and potatoes. Regional inflation varied across Spain, with Cantabria registering the highest annual CPI at 4.3%. Extremadura had the lowest at 3.0% among the autonomous communities.
Spain’s harmonised inflation rate remains above euro-area levels
Spain’s 3.9% harmonised inflation rate stayed above the euro area’s flash estimate of 2.9% for July. Euro-area inflation was 2.8% in June before rising the following month. Eurostat published the regional figure as an initial estimate for July. Spain’s national harmonised inflation reading was final. The common HICP framework enables comparison of inflation rates across EU economies using a standard method.
Spain’s headline CPI has moved upward in recent months. It was 3.2% in April, May, and June. The rate reached 3.4% in March, then eased before climbing again in July. Core inflation remained in a narrower range, standing at 2.8% in April, 3.0% in May, 2.9% in June, and 3.0% in July. The latest data show that transport, housing, and energy costs primarily drove the inflation increase in July.