Economy
Sections
Highlight
Sections
Highlight
The price of the shopping basket rose by 4.2% in Spain last month, according to latest inflation data.
This is the lowest rate in two and a half years, since December 2021, but the pace of the downward path - the figure is already far from the steep double-digit rises seen in 2023 - is proving very slow, according to the national institute of statistics (INE) figures.
Some basic food products continue to show skyrocketing prices, even amid the reduction of IVA (Spain's sales tax) that the government has decided to extend after a year and a half in force.
Olive oil has become one of the major headaches for consumers over the past year, with controversial prices on supermarket shelves reaching at times more than ten euros per litre. Between June and May, the price of oil fell by 2.4%, dropping in monthly rate for the second consecutive month.
This is something that, as shown by the INE, has not happened since July 2022, but this does not mean relief as this product has risen by almost 54% in the past 12 months (compared to June 2023). Since January 2021, the increase has been more than 191%.
In the past year, oils and fats showed the highest increase (39.7%), followed by fresh fruit (14.4%) and lamb (9.9%). Sugar, fresh fish and coffee also rose by more than 4%. On the other hand, decreases - albeit very moderate - are beginning to be noted in staples such as milk, which has fallen by 2.9% since June 2023, and vegetables, which have fallen by 1.9%.
This moderation in the rise in food prices but, above all, the drop in fuel prices, have helped headline inflation to fall by two tenths of a percentage point in June to 3.4%, according to the INE's data. This is only two tenths of a percentage point less than the annual maximum in May and still six tenths of a percentage point above the lowest figure of the year, reached in February at 2.8%.
The underlying rate remained at 3% in June. This is the rate that allows experts to analyse the behaviour of prices in the daily basket of products and services, excluding energy costs and unprocessed food, which are the most volatile. It peaked in February 2023 (7.6%) but since then it has gradually fallen to 2.9% in April, the lowest rate in two years, before rising to 3% in May and remaining at that level in June.
But if fuel prices are falling and food prices are moderating their rise, what is it that continues to keep up the pressure on prices? In June, the explanation is to be found in the start of the holiday period and the tourism boom that has pushed up the cost of holidays.
Specifically, INE data shows that what increased most in price in June compared to May were domestic package holidays (18.6%) and domestic flights (14.3%).
And the figures are overwhelming if we take into account the growth of these first six months of the year, where hotels and hostels (31.4%), followed by domestic tourism packages (24.4%) and domestic flights (21.8%) have also seen the biggest price increases.
The ministry of economy said: "the inflation data continue to reflect the capacity of the Spanish economy to combine the highest economic growth among the main countries of the Eurozone with a moderation in prices and the maintenance of measures to continue reducing food prices".
Publicidad
Publicidad
Publicidad
Publicidad
Esta funcionalidad es exclusiva para registrados.
Reporta un error en esta noticia
Comentar es una ventaja exclusiva para registrados
¿Ya eres registrado?
Inicia sesiónNecesitas ser suscriptor para poder votar.