MADRID, SPAIN / RankWire.AI / – Across Europe, inflation trends continue to evolve, with Spain reporting a significant increase in its annual consumer price index for July. The final official data indicates that Spain’s inflation climbed to 3.6%, up from 3.2% in June. This figure exceeds the preliminary flash estimate of 3.5% issued on July 30. Consumer prices saw a monthly rise of 0.3%, surpassing the early estimate of 0.2%. According to the National Statistics Institute, or INE, these July figures are definitive and will not be subject to further updates.
Transport emerged as the primary contributor to the annual inflation rate, with group prices increasing by 6.2% compared to the previous year. This upward movement mainly reflected higher costs for fuel and lubricants used in personal vehicles, which rose more sharply than they did in July 2025. Housing expenses also experienced a 5.7% increase annually, one percentage point higher than June, driven by faster-growing electricity prices compared to the same period last year.
The core inflation rate, which excludes unprocessed food and energy products, nudged up to 3.0% from 2.9% in June. Spain’s Harmonised Index of Consumer Prices (HICP) grew by 3.9% year-on-year, surpassing the 3.6% rate recorded in June. The final harmonised inflation figure also exceeded the initial estimate of 3.8%. On a monthly basis, the HICP remained unchanged in July. This index provides a standardized measure allowing for comparison of inflation rates across European Union member states.
Fuel and electricity costs drive July’s overall price increase
In July, monthly transportation costs rose by 2.3%, making it the largest positive factor influencing Spain’s headline CPI for the month. Housing costs grew by 1.6%, mainly due to higher electricity prices and smaller increases in gas and liquid fuels. Prices for recreation, sport, and culture also increased by 2.3%, with rising package holiday prices contributing to the upward trend. These increases collectively offset declines seen in other categories of consumer spending.
Prices for clothing and footwear fell sharply by 10.2% since June, mainly due to summer sales discounts across the category. Food and non-alcoholic beverages experienced a slight decline of 0.7%, driven by lower prices for fruit, nuts, vegetables, pulses, and potatoes. Among Spain’s autonomous communities, Cantabria registered the highest annual CPI increase at 4.3%. Extremadura, on the other hand, recorded the lowest rate among the regions at 3.0%, with the national average standing at 3.6%.
Spain’s harmonised inflation rate remains above the euro-area average
The harmonised inflation rate for Spain, at 3.9%, continued to outpace the euro-area’s preliminary flash estimate of 2.9% for July. Euro-area inflation was 2.8% in June before rising again in July. Eurostat released the initial July euro-area figure, whereas Spain’s harmonised rate is final. The harmonised index adheres to a common framework, enabling consistent inflation comparisons across EU nations.
This latest data marks a continuation of Spain’s upward inflation trend after reaching an annual rate of 3.4% in March. The rate then decreased slightly to 3.2% in April, May, and June, before climbing again in July. Core inflation moved from 2.8% in April to 3.0% in May, then remained steady at 2.9% in June and increased to 3.0% in July. The INE calculates the CPI based on approximately 200,000 monthly price observations across goods and services purchased by households throughout Spain.