Electricity and gasoline increase the cost of living in Catalonia.

BarcelonaRising electricity and oil prices, which led to higher gasoline and diesel prices, pushed up the cost of living for Catalan families in July. In the midst of the summer season, rising prices for air travel and package holidays also played a role. Overall, the year-on-year inflation rate in Catalonia was slightly lower than the Spanish average, although it fell short of 2%, the target level set by the European Central Bank (ECB).

Prices of consumer goods and services rose 2.3% last month in Catalonia compared to July 2024, according to data from the Consumer Price Index (CPI, the indicator that measures the cost of living for families) published this Wednesday by the National Institute of Statistics (INE). This represents an increase of three-tenths of a percentage point compared to June, when the annual inflation rate was 2%. In just two months, the CPI shot up five-tenths of a percentage point, reaching its highest figure since February (3.1%). By province, the year-on-year CPI increased in July. Specifically, it stood at 2.2% in Barcelona, 2.4% in Girona and Lleida, and 2.6% in Tarragona.

In Spain as a whole, prices grew by 2.7% compared to the same month in 2024, as reported initially advanced by the INE two weeks agoand four-tenths above the June rate. Positive rates were recorded in all autonomous communities during the month of July: the Balearic Islands recorded the highest rate (3.5%), and Murcia, the lowest (2%).

In the case of Spain, the increase has been somewhat more pronounced in recent months compared to Catalonia, with a rise of seven-tenths between May and July. In monthly terms, the cost of living in Spain decreased by 0.1% compared to June, the same figure as in Catalonia, in line with the record for the previous month.

The peak of inflation this year, both in Catalonia and the rest of Spain, occurred in February, with increases of 3.1% and 3%, respectively. The increase in prices at the beginning of the year was due to the rise in electricity, restaurants, and entertainment.

The Ministry of Economy maintains that the inflation trend these summer months is "compatible with the strong dynamism of the Spanish economy, which remains a driver of growth among major European countries." In this regard, the gross domestic product (GDP, the indicator that measures the size of an economy) grew upBetween April and June of this year, the economy grew by 2.8% compared to the same period in 2025, maintaining a growth rate well above the European average, in line with the last two years. "Price stability, record job creation, and rising wages are allowing families to progressively recover their purchasing power," the Spanish government adds.

Holidays reduce the cost of living

The growth recorded this July is due to the increase in electricity prices compared to the exceptional drop recorded a year ago, driven by a drop in gas prices, the reduction of VAT to 10% on electricity bills, and lower demand, which led to a considerable reduction in rates. A year ago, the CPI began to ease in July, reaching 2.8%, after months above the symbolic 3% barrier and with peaks of 3.6% (May 2024) and 3.4% (June 2024). A year later, electricity costs soared by 10.7% in Catalonia.

Also impacting the increase in the cost of living, although to a lesser extent, were increases in fuel prices, in line with the usual trend in summer, when increased travel for holidays increases pressure on prices. All of this, without forgetting the geopolitical conflicts that also greatly influence this variable, such as the recent one between the United States and Israel and Iran, the main cause of the increase in the CPI in June. On the other hand, the rising cost of air travel and combined passenger transport, in addition to package tours, has had an influence, another symptom of how vacations raise prices.

As happens every July, the summer sales contributed to the fall in prices, with the fashion sector leading the discount period. This fact was noticeable in clothing and footwear, which fell by 9.4% and 7.8% respectively in Catalonia compared to June.

Food, which had previously been the main driver of higher prices, increased by 2.4% in Catalonia compared to the same month last year. In Spain as a whole, this has allowed the CPI growth to moderate, down by one tenth of a percentage point. Turning to the retail sector, the increase in beef (+11.4%) and lamb (+10%), eggs (+13.7%), and coffee, cocoa, and herbal teas (+17.2%) stands out. However, oil, one of the products that has become most expensive in recent years, continues its downward trend and in July was 34.6% cheaper than a year ago. Since its peak in April 2024, oil has fallen by 50%.