Spain's Inflation Rate Rises in July

According to the preliminary report released by Spain's National Statistics Institute (INE) on Wednesday, the country's annual inflation rate increased to 2.7% in July, up from 2.3% in June.

Key Drivers Behind the Increase

The rise in inflation was primarily attributed to higher electricity prices, contrasting with a decline in the same sector in July 2024. Additionally, fuel prices played a lesser role in the inflation uptick.

Monthly and Core Inflation Insights

On a monthly basis, consumer prices saw a slight decrease of 0.1%. The Harmonized Index of Consumer Prices (HICP) showed a 2.7% year-over-year increase but a 0.4% decrease from June. The core inflation rate, excluding unprocessed food and energy, remained steady at 2.3% for the month.