Spanish consumers can breathe a little easier as the country's food inflation rate showed signs of easing in April.
The latest data from the National Institute of Statistics (INE) reveals that the rate of increase in food prices slowed down to 12.8%, marking a 3.6-point drop from the 16.4% increase recorded in March. This is a much-needed respite for consumers who have been grappling with rising food costs for months.
The drop can be attributed to the step effect, as food prices surged in April last year following the start of the war in Ukraine. While food prices have continued to rise, the rate of increase has slowed down, suggesting that food inflation may have reached its peak.
The slower growth in food prices can be attributed to the lower cost of fresh or chilled vegetables, with the price of the latter falling by 2.6%, as well as the fact that the prices of meat, bread, cereals, oils, milk, cheese and eggs increased less in April this year than in the same month of 2022.
However, certain foods have become more expensive over the last year, such as sugar, butter, milk (whole and skimmed), and rice, with respective price increases of 49.6%, 31.2%, 27.6%, and 23%.
Although the drought is fully affecting the countryside and farmers warn that poor harvests will especially affect the price of cereals, fruits and vegetables, as well as oil and meat, the government approved measures worth 2,190 million euros between direct aid and tax cuts to face the episode of drought that the country is going through.
On the other hand, the reactivation of the tourism sector with Easter as a trigger and the arrival of good weather has caused a rise in the prices of hotels and tourist packages. The price of hotels in April was 17.2% more expensive than in March, and the cost of international tourist packages rose by 13.7% compared to the 0.5% increase in domestic packages.
September 26, 2023
September 22, 2023