Spain inflation holds at 3.2% in June despite rising electricity prices

Published on 15/07/2026 - 14:32 GMT+2•Updated 15:12

Inflation in Spain eases in June, but remains at high levels. The National Statistics Institute (INE) confirmed on Wednesday that the consumer price index (CPI) stood at 3.2% year on year, well above the European Central Bank’s 2% target, despite the VAT increase.

Higher electricity and gas prices offset the cheaper motor fuels, linked to a truce in the Middle East that has already been broken. Core inflation, which excludes energy and unprocessed foods because of their volatility, came in at 2.9%, one tenth lower than the previous month, in line with INE’s flash estimate.

Electricity prices up 6% in June after reduced VAT ends

Electricity had a significant impact on inflation and was 6% more expensive year on year in a June that was the second warmest on record, marked by greater use of air conditioning and fans in households.

In April and May, electricity recorded year-on-year falls of 5.5% and 4.3% respectively, which allowed the government to maintain the VAT cut introduced to cushion the economic impact of the war. The removal of this measure is thought to have contributed to the rebound in electricity prices in June, although the Economy Ministry highlights the stability of overall inflation.

The Minister of Finance, Arcadi España, said in a post on social network X: "The CPI data for June confirm the effectiveness of the Spanish government’s measures. In an international context marked by uncertainty, inflation remains stable and food prices are moderating their growth to 1.9%. These figures reflect the impact of support policies for families and businesses, together with the commitment to renewable energies, which is strengthening the resilience of our economy."

The First Vice-President and Economy Minister, Carlos Cuerpo, argues that the data "confirm that the government’s response plan continues to meet its objective: cushioning the impact of the war in Iran on inflation and protecting households’ purchasing power", according to sources in his department. They add that the focus on renewable energies is "precisely what is allowing emergency measures to be gradually phased out from a position of strength".

Food and non-alcoholic beverages provided some relief for the CPI, as their increase slowed in June to 1.9%, three tenths below the 2.2% recorded in May.

Fuel prices also felt the brief truce between the US and Iran

The truce between the United States and Iran, although brief, eased pressure on fuel prices in June, which moderated their rise even though the conflict has resumed and the Strait of Hormuz has yet to return to normal levels of activity.

Petrol rose by 1.3% and diesel by 14.1%, according to INE. The Spanish government maintained the gradual withdrawal of fuel subsidies, although the renewed escalation of tension in the Middle East could once again push up oil prices.

Housing and tourism add to upward pressure on inflation

The housing category increased its rise to 4.7% in June, compared with 1.4% in May, while transport slowed its growth to 5.1%. There was also a notable increase in the cost of restaurants and accommodation, with the latter surging 9.3% year on year.

Madrid recorded the highest provincial inflation in June, at 3.8%, followed by Las Palmas (3.6%). At the other end of the scale, Cáceres and Jaén registered the lowest rates, at 2.2%. By autonomous community, Extremadura saw the smallest rise in prices, at 2.4%.