The latest inflation figures have just been released by the National Institute of Statistics and they do not make pleasant reading. They show that shoppers in Malaga province are paying 16.2% more for basic food items than they did a year ago, which is significantly above the national average (14.4%) and behind only Badajoz (18.6%) and Cuenca (17.7%).
Nor is this the only problem: energy prices have risen by 22.4% in a year, although it should be noted that this is below the national average. The Consumer Price Index for September shows that inflation in Malaga last month was 9.4%, which was slightly lower than predicted but still a matter of concern for households and businesses. The situation is not exclusive to Malaga or Spain, experts stress: it is something that is affecting the world economy .
Unsurprisingly, rising inflation has led to drastic decisions from the European Central Bank including an aggressive policy of increasing interest rates in an attempt to ‘cool’ the economy. The plan is to tighten the capacity for spending and borrowing in order to slow down the rise in prices.
One of the consequences of this policy has been a sharp increase in mortgage repayments for those with variable-interest loans. These account for three out of every four Spanish mortgages.