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Spain inflation rises in July, keeping ECB rate pressure alive

July headline CPI was confirmed at 3.6% year over year, up from 3.2% in June, with petrol prices cited as the main driver.

Reported · Written up by our desk · Central Banks

Spain’s inflation accelerated again in July, with the country’s final CPI reading at 3.6% year over year, compared with 3.2% in June, Forexlive reported.

The rise was attributed largely to renewed increases in petrol prices, as transportation costs climbed 2.3% on an annual basis in July. Spain’s statistics institute noted the group contributed 0.365% to overall CPI.

Core inflation also moved higher, confirmed at 3.0% year over year in July versus 2.9% in June. The reading remains above last year’s level, where core inflation was 2.3% in July.

Forexlive said the latest data is another signal that the ECB may still face pressure to act, particularly given uneven progress across the region and potential risk factors tied to energy prices if geopolitical conditions around the Strait of Hormuz worsen.

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