MADRID, SPAIN / RankWire.AI / – Spain’s annual inflation rate increased to 3.6% in July, rising from 3.2% in June. The final figure came in above the 3.5% preliminary estimate released at the end of July. Consumer prices also rose 0.3% from the previous month. The earlier estimate had pointed to a 0.2% monthly increase. Spain’s National Statistics Institute, or INE, confirmed the final July data in its latest consumer price report.
Transport costs recorded the strongest annual increase among the main spending groups. Prices in the category rose 6.2% from July 2025, led by higher fuel and lubricant costs. Housing prices advanced 5.7% from a year earlier. That annual rate stood one percentage point above June’s reading. Electricity prices contributed to the increase, while gas and liquid fuel costs also moved higher during the month.
Core inflation, which excludes unprocessed food and energy, increased to 3.0% from 2.9% in June. Spain’s harmonised inflation rate also moved higher in July. The Harmonised Index of Consumer Prices rose 3.9% from a year earlier, compared with 3.6% in June. The final reading exceeded the preliminary 3.8% estimate. On a monthly basis, the harmonised index showed no change.
Transport and housing drive monthly increase
Transport prices rose 2.3% from June, making the largest positive contribution to the monthly CPI increase. Housing prices increased 1.6% over the same period. Higher electricity costs played a major role in that rise. Recreation, sport and culture prices also climbed 2.3% during July. Package holidays helped push that category higher as summer travel demand affected household spending patterns captured in the index.
Several categories moved in the opposite direction during July. Clothing and footwear prices fell 10.2% from June as seasonal discounts reduced retail prices. Food and non-alcoholic beverage prices declined 0.7% on the month. Lower prices for fruit, nuts, vegetables, pulses and potatoes contributed to that decrease. Regional inflation also varied across Spain, with Cantabria posting the highest annual CPI rate at 4.3%. Extremadura recorded the lowest rate among the autonomous communities at 3.0%.
Spain’s harmonised rate remains above euro-area level
Spain’s 3.9% harmonised inflation rate remained above the euro area’s 2.9% flash estimate for July. Euro-area inflation had stood at 2.8% in June before increasing the following month. Eurostat published the regional figure as an initial estimate for July. Spain’s national harmonised reading was final. The common HICP framework allows inflation rates to be compared across European Union economies using a standard method.
Spain’s headline CPI has moved higher in recent months after standing at 3.2% in April, May and June. The rate had reached 3.4% in March before easing and then rising again in July. Core inflation followed a narrower range. It stood at 2.8% in April, 3.0% in May, 2.9% in June and 3.0% in July. The latest figures show that transport, housing and energy-related costs had the largest influence on July’s inflation increase.