The Consumer Price Index (CPI) rose in July to 3.6% year-on-year, four-tenths higher than in June and its highest record since May 2024, according to the final data released this Thursday by the National Institute of Statistics (INE). The agency has thus revised its preliminary estimate upward by one-tenth, which placed inflation at 3.5%.
With the July reference, driven mainly by the energy bill, inflation in Spain has now chained five consecutive months above 3% year-on-year.
Statistics detail that in July, housing prices were pushed up by the increase in electricity and, to a lesser extent, gas and liquid fuels, as well as transportation, due to the rise in fuels.
In this context, the Ministry of Economy has indicated that diesel recorded a year-on-year variation of 15.7% in July, exceeding the 15% threshold set in the decree of measures to contain the impact of the war in Iran. When that limit is exceeded, the safeguard clause of the response plan is automatically activated, so the reduction of the Hydrocarbons Tax applicable to diesel will be 20 cents per liter in September, compared to the 5 cents initially planned for that month.
In contrast, gasoline, whose subclass recorded a year-on-year variation of 7.3% in July, below 15%, will continue with the usual schedule of gradual withdrawal, maintaining a bonus of 5 cents per liter in September.
On the food side, prices moderated their year-on-year advance in July. "The inflationary pressure has not been transferred to food, for which the year-on-year variation was 1.6%, three-tenths below the June rate and a minimum not seen since 2021," they have highlighted from the Ministry of Economy.
Core inflation rises to 3% and the HICP to 3.9%
According to INE figures, core inflation (which excludes unprocessed foods and energy products) stood at 3% in July, in line with the preliminary data from the end of last month and one-tenth above the June record.
In monthly rate (July compared to June), the CPI increased by 0.3%, one tenth more than expected, driven by the rise in gasoline, electricity, and tourist packages. In contrast, the clothing and footwear group and the food and non-alcoholic beverages group contributed to containing prices, in the first case due to summer sales and, in the second, due to the decrease in prices of fruits, nuts, vegetables, legumes, and potatoes.
With the advance of July, the price index has recorded six consecutive months of increases in monthly rate.
For its part, the harmonized CPI (HICP) raised three tenths its year-on-year rate in July, up to 3.9%, while in monthly comparison it recorded a variation of 0.0%.