Spain's annual inflation rose to 3.6% in July, marking its highest rate since May 2024 and driven largely by surging energy costs. Core inflation, which strips out volatile food and energy prices, edged up to 3%.
The transport group posted a 6.2% annual increase, while housing costs climbed 5.7%, with electricity prices jumping 8.4%. Liquid fuels surged 31.5%, and diesel's 15.7% annual rise has triggered a safeguard clause that will raise the hydrocarbon tax discount to 20 cents per litre in September. Red Sea and Strait of Hormuz blockades have underpinned energy price instability.
Food and non-alcoholic beverage prices rose just 1.6%, their lowest annual rate since 2021. Regionally, Cantabria recorded the highest rate at 4.3%, while Extremadura posted the lowest at 3%. The EU-harmonised index stood at 3.9%.