Spanish Inflation Surges Past Forecasts in July, Hitting 3.5% Year-on-Year

Spain's consumer price index (CPI) rose 3.5% in July compared to the same month last year, surpassing economists' forecasts of a 3.1% increase.

The data, released by Spain's National Statistics Institute (INE), indicates persistent inflationary pressures within the Eurozone's fourth-largest economy.

Core inflation, which strips out volatile food and energy prices, remained elevated at 2.7%, while the primary driver of the overshoot was a sharp rise in fuel and electricity costs compared to a year earlier.

The services sector, particularly tourism and hospitality, has seen sustained price increases as demand remains robust during the peak summer season.