FX.co ★ Spain Inflation Rate Confirmed at 5-Month High of 2.7%

Spain experienced a rise in its annual inflation rate for the second consecutive month, reaching a five-month peak of 2.7% in July 2025, in line with initial estimates. The most significant upward pressure came from housing and utility prices, which increased by 6.7% from 4.2% in June, largely driven by higher electricity costs. Additionally, transportation costs saw an uptick, with a 0.2% increase compared to a 0.8% decline previously, influenced by fuel prices. Core inflation, excluding volatile items like food and energy, reached a three-month high of 2.3%, slightly above June's 2.2%, as anticipated. In terms of the EU-harmonised Consumer Price Index (CPI), there was a 2.7% year-over-year rise, consistent with earlier readings, while a monthly decline of 0.3% was recorded, slightly better than the prior prediction of a 0.4% decrease.