Spain’s inflation picks up in July on energy costs

Spanish inflation increased in July due to rising energy costs, according to the National Statistics Institute (INE). The annual inflation rate reached 3.6% in July, up from 3.2% in June, the institute reported. Energy prices, especially for motor fuels and electricity, played a significant role in the increase. However, prices for food and non-alcoholic beverages, particularly fruits and vegetables, decreased.

The initial estimate for July was 3.5%. The Spanish central bank had already raised its inflation forecast for the year in June, anticipating it to reach 3.6%. The closure of the Strait of Hormuz, a vital shipping route for Gulf oil and gas exports, and the subsequent US and Israeli attacks on Iran, have disrupted global energy markets.