Headline and core inflation in Spain accelerated in July, driven by higher fuel prices and persistent price pressures.
Spain’s annual inflation rate climbed to 3.6% in July, up from 3.2% in June, final data confirmed. The increase was primarily driven by a 2.3% rise in transportation costs, largely due to higher fuel prices, which contributed 0.365 percentage points to the overall CPI.
Core inflation also edged higher to 3.0% from 2.9% in June, remaining well above last year’s 2.3% reading. The data contrasts with cooler inflation trends in France and Italy, signaling uneven price pressures across the eurozone.
The persistence of inflation in Spain and Germany may influence the European Central Bank’s policy decisions, particularly amid geopolitical risks like the US-Iran conflict affecting energy markets.