MADRID, SPAIN / RankWire.AI / – According to the final official data, Spain’s year-over-year inflation rate increased to 3.6% in July, up from 3.2% in June. This figure exceeded the preliminary flash estimate of 3.5% issued on July 30. Consumer prices went up by 0.3% from June, surpassing the earlier monthly estimate of 0.2%. The National Statistics Institute, known as INE, confirmed that these July numbers are final and will not be subject to further revision.
Transport contributed most significantly to the annual increase, with prices in this sector rising 6.2% compared to the previous year. The escalation mainly reflected higher costs for fuel and lubricants used in personal vehicles. These prices rose more sharply than they did in July 2025. Housing expenses also grew by 5.7% annually, a one-percentage-point increase from June’s rate, driven by faster growth in electricity costs compared to the same period last year.
Core inflation, which excludes unprocessed food and energy items, inched upward to 3.0% from 2.9% in June. Spain’s Harmonised Index of Consumer Prices (HICP) increased by 3.9% year-on-year, up from 3.6% in June. The final harmonised rate surpassed the preliminary estimate of 3.8%. On a monthly basis, the harmonised index remained unchanged in July. This measure serves as a standard for comparing inflation rates across European Union member states.
Rising fuel and electricity prices drive July inflation
During July, transportation costs rose by 2.3%, making it the largest positive contributor to Spain’s overall CPI for the month. Housing costs increased by 1.6% due to higher electricity prices and smaller gains in gas and liquid fuels. Prices in recreation, sport, and culture also climbed 2.3%, mainly driven by increased package holiday costs. These increases more than offset declines seen in other categories within the consumer basket.
Prices for clothing and footwear dropped 10.2% from June, influenced by Spain’s summer sales that reduced prices across the sector. Food and non-alcoholic beverage prices declined by 0.7%, reflecting 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 CPI rate stood at 3.6%.
Spain’s harmonised inflation rate remains above euro-area levels
The harmonised inflation figure of 3.9% in Spain remained above the euro area’s initial flash estimate of 2.9% for July. In June, euro-area inflation was at 2.8% before edging higher in July. Eurostat released the preliminary euro-area figure for July, whereas Spain’s national harmonised rate is definitive. The harmonised index follows a common methodology that enables direct comparisons of inflation across EU economies.
This July data continues a recent upward trend in Spain’s headline CPI after reaching 3.4% in March. The rate then stabilized at 3.2% through April, May, and June before climbing again in July. Core inflation shifted from 2.8% in April to 3.0% in May, then to 2.9% in June, and finally 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.