Spain’s inflation rate increased to two point seven percent in July, according to the National Statistics Institute. This marks a four-tenths rise from the previous month, continuing a trend of consecutive increases for two months. While this figure is below the two point eight percent recorded in July 2024, it exceeds the two point three percent from July 2023 and is the highest since February.

The Ministry of Economy attributes this inflationary pressure to a base effect related to a considerable drop in electricity prices in July last year. The reduced tariffs were influenced by a temporary decrease in gas prices, a value-added tax reduction to ten percent, and lower demand. This year’s rising inflation is, therefore, more pronounced when compared to last year’s deflation.

Consumer prices in July have been influenced not only by the energy sector but also by rising transport costs, which typically increase during the summer months due to higher travel demand. The overall consumer price index recorded its lowest point of the year in May but climbed seven-tenths to reach its highest level since February.

Those sectors showing significant increases include housing, especially with rising electricity costs, and transport, where fuel prices have risen. In contrast, unprocessed food prices saw a minor decrease. The Balearic Islands reported the highest inflation rate at three point five percent, while the Region of Murcia noted the lowest at two percent.