Spain’s consumer price inflation rose to 3.5% in July 2026, up from 3.2% in June and above the 3.4% market forecast, according to preliminary data. This is the highest rate since May 2024, fueled by rising costs for fuels, lubricants, and electricity, as renewed Middle East tensions push energy prices higher again. The core inflation rate, excluding unprocessed food and energy, also climbed to 3.0%, from 2.9% in June, matching May’s near two-year peak. Meanwhile, the EU-harmonized inflation rate reached 3.8%, surpassing the 3.7% expectation and remaining well above the European Central Bank’s 2.0% target.