Inflation picked up again in Spain in July and reached 3.5% year on year, three tenths of a point higher than in June, driven by the rise in fuel prices and electricity, according to the flash estimate published on Thursday by the National Statistics Institute (INE).
The statistics office attributes the rebound to the fact that both fuels and lubricants for private vehicles and electricity rose more sharply than in the same month last year. With this increase, inflation has reached its highest level since May 2024 and has now been above 3% for five consecutive months.
Underlying inflation, which excludes unprocessed food and energy products because of their greater volatility, also rose by a tenth of a point in July, to 3%, suggesting that price pressures continue beyond the impact of energy.
Meanwhile, the Harmonised Index of Consumer Prices (HICP), used to compare price developments between European Union countries, put the annual rate at 3.8%, two tenths higher than in June.
Despite the rise in prices, Spain’s Ministry of Economy argued that the measures adopted to address the economic consequences of the conflict with Iran remain in force and are helping to contain the impact of higher energy costs on inflation and households’ purchasing power.
The figures come against a backdrop of more expensive energy caused by geopolitical tensions in the Middle East, which have pushed up international oil and gas prices in recent weeks.