Inflation in Spain holds at 3.2% in June despite higher electricity prices
Published on 15/07/2026 - 14:32 GMT+2•Updated 15:21 Inflation in Spain eases in June, but remains at...
Published on 15/07/2026 - 14:32 GMT+2•Updated 15:21
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.
The rise in electricity and gas prices offset cheaper motor fuels, linked to a truce in the Middle East that has already collapsed. Core inflation, which excludes energy and unprocessed food because of their volatility, came in at 2.9%, one tenth of a point lower than the previous month, in line with the flash estimate published by INE.
Electricity rises 6% in June after reduced VAT is scrapped
Electricity was a key driver of inflation, rising 6% year-on-year in June, the second warmest on record, marked by greater use of air conditioning and fans in households.
In April and May, electricity posted year-on-year falls of 5.5% and 4.3% respectively, which made it possible to maintain the VAT cut introduced by the government to cushion the economic impact of the war. Scrapping this measure is thought to have contributed to the rebound in electricity prices in June, although the Economy Ministry points to the stability of headline inflation.
The Finance Minister, Arcadi España, said in a post on social network X that: "The CPI data for June confirm the effectiveness of the measures taken by the Government of Spain. In an international context marked by uncertainty, inflation remains stable and food prices have slowed their rise to 1.9%. These figures reflect the impact of policies to support households and businesses, together with the drive for renewable energy, which is strengthening the resilience of our economy".
The First Deputy Prime Minister and Economy Minister, Carlos Cuerpo, argues that the figures "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 push for renewable energy is "precisely what is allowing emergency measures to be phased out from a position of strength".
Food and non-alcoholic drinks provided some relief to the CPI, as their rise slowed in June to 1.9%, three tenths of a point below the 2.2% recorded in May.
Fuels also felt the brief truce between the US and Iran
The truce between the United States and Iran, brief though it was, eased pressure on fuels in June, tempering their rise even though the conflict has resumed and the Strait of Hormuz has yet to return to its usual level of activity.
Petrol rose by 1.3% and diesel by 14.1%, according to INE. The Spanish government pressed ahead with the gradual phasing-out of fuel subsidies, although the renewed flare-up of tensions in the Middle East could once again put pressure on oil prices.
Housing and tourism push inflation higher
The housing component saw its increase accelerate to 4.7% in June, compared with 1.4% in May, while transport slowed to 5.1%. There was also a marked rise in prices at restaurants and for accommodation, the latter surging by 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 posted the lowest rates, at 2.2%. Among Spain's regions, Extremadura saw the smallest rise in prices, at 2.4%.
