Spain’s inflation picks up in July on energy costs

Spain's inflation rates increased in July due to rising energy costs, particularly for motor fuels and electricity, according to final data released Thursday. The annual inflation rate reached 3.6% in July, up from 3.2% in June, as reported by the National Statistics Institute (INE). The surge in energy prices contributed to higher transportation costs, while food and non-alcoholic beverage prices decreased, with fruits and vegetables experiencing the most significant decline.

INE had previously projected inflation to be at 3.5% in July. Global energy markets were significantly impacted by the closure of the Strait of Hormuz, a crucial shipping route for oil and gas exports from the resource-rich Gulf region, following US and Israeli strikes on Iran. Spain's central bank had already raised its inflation forecast in June, projecting an annual rate of 3.6% for the entire year, an increase from the earlier forecast of 3.0%.