The National Institute of Statistics (INE) reported this Thursday that inflation in July remained at the level maintained in the previous three months and rose to 3.6%, mainly due to gasoline and electricity. This figure is one tenth above the 3.5% advanced on July 30. In a 2026 marked by the war conflict in the Middle East, inflation had remained at 3.2% between April and June, so the final July figure is four tenths higher than the previous one. It is already five consecutive months with an annual rate above 3%. In its case, electricity recorded an annual rate of 8.4% and natural gas, 4.1%.
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That 3.6% in the seventh month of the 2026 fiscal year is the highest rate in just over two years; specifically, since the one recorded in May 2024. In July, the gradual withdrawal of the ‘anti-crisis’ measures in the second package proposed by the Government and approved on July 23 by the plenary of the Congress of Deputies began to be felt.
Statistics points out that the transport group stands out for its positive influence, whose annual rate has risen more than one point, to 6.2%. This increase was mainly due to the rise in prices of fuels and lubricants for personal vehicles, which have increased more than in July 2025.
Additionally, the housing group set its annual variation at 5.7%, which is one point above that of the previous month. “This behavior is mainly due to electricity prices, which have increased more than in the same month of 2025,” the statistical institute assures.
Sources from the Ministry of Economy announced this Thursday that the diesel tax cut will automatically increase to 20 cents per liter in September “thanks to the protection mechanism of the response plan.”
These sources indicate that the detail of the July CPI published by the INE confirms that the diesel subclass registered an annual variation of 15.7% in July, above the 15% threshold provided in the royal decree-law of measures to contain the impact of the war in Iran. “When this threshold is exceeded, the safeguard clause of the response plan is automatically activated: the Hydrocarbon Tax reduction applicable to diesel will increase to 20 cents per liter in September, compared to the 5 cents initially planned for that month,” they indicate.
On the other hand, gasoline recorded an annual variation of 7.3% in July, below 15%. Thus, it maintains the gradual withdrawal schedule, with a reduction of 5 cents per liter in September. The Economy Ministry assures that “the mechanism thus acts proportionally, reinforcing protection only where price pressure justifies it.”
As the Vice President and Minister of Economy, Carlos Cuerpo, has already stated on some occasions, the measures have contributed to reducing inflation by one point on average in recent months. “In other words, the response plan has cushioned more than 60% of the price increase caused by the external shock of the war in Iran,” the ministry points out.
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Inflationary pressure has not affected food, whose annual variation is 1.6%
On the other hand, inflationary pressure has not been passed on to food, for which the annual variation has been 1.6%, three tenths below the June rate and a minimum not seen since 2021, highlight the Economy department. The INE details that food and non-alcoholic beverages recorded a variation of -0.7% “as a consequence of the price drop of fruits and nuts and vegetables, legumes, and potatoes.”
Additionally, Statistics highlights the negative monthly impact of clothing and footwear, with a rate of -10.2%, due to price reductions during the summer sales campaign.
Meanwhile, the core CPI (which excludes energy and food from its calculation) stands at 3%, one tenth higher than in June.
By autonomous communities, those above the national average are Cantabria (4.3%), Galicia (4.1%), Balearic Islands and Madrid (both with 3.9%). Meanwhile, Catalonia remains at 3.5%, below the average for all of Spain. The community that has suffered the least impact has been Extremadura, with a positive annual rate of 3%.
Catalonia remains at 3.5%, below the national average
In parallel, it was made public yesterday Wednesday that fuel prices have chained their sixth consecutive increase this week, accumulating a rise of more than 21% since the VAT reduction to 10% expired at the beginning of last July, and approaching the year’s highs in the middle of the summer period.
The average price per liter of diesel has increased this week by 1.56% compared to the previous one and stands at 1.82 euros, its highest level since mid-April, while gasoline has recorded a price increase of 0.88% compared to last week, up to 1.70 euros and reaching highs since the week of April 23, according to data from the European Union’s Oil Bulletin collected by Europa Press.
