2023-08-11 09:10:25
The shopping basket of Spanish families continues to become more expensive, although since last April the rate of price increases has been moderating. In July, food rose 10.8%, according to the final inflation data published this Friday by the INE. The figure is five tenths above the average of 10.3% of the previous month. And it already accumulates 16 months exceeding double digits.
“This behavior is due to the fact that the prices of fruits and oils and fats have increased this month, while they fell in July 2022,” they indicate from the agency.
Specifically, there is little news compared to previous months among the foods that rise the most. In the annual variation rate, sugar continues to be the great headache for consumers, with a 44.2% increase in cost, the same as olive oil -which is already almost 39% more expensive- or milk, which rises 17.7%.
followed by olive oil (38.8%), potatoes (22.9%), rice (22%), butter (17.9%) and whole milk (17.8%).
The increases continue to eat up the budget of some households that continue to juggle to make ends meet without changing their consumption habits. And that the VAT reduction approved by the Government in January for certain basic products has prevented them from becoming even more expensive, as has been revealed this week by Competition, in a report in which it gives its support to the performance of supermarkets with the measure, ensuring that the foods affected by the discount fell in price by 2% in January 2023 compared to a month earlier, while those that were not included in the measure rose 1.8% in that same period.
Cup general
The rise in food prices is not the only thing that has plagued consumers in the last year. After two months of falls to the lowest rate in two years, general inflation picked up again in the seventh month of the year due to the increase in the cost of fuel and tourist packages compared to the prices of a year ago.
And it is that the summer season has been especially noticeable in July, due to a skyrocketing demand that has caused national and international packages to become more expensive by about 18%. Leisure also rises notably. For example, hotels, cafes and restaurants are now 6.5% more expensive than a year ago.
Specifically, the general CPI stood at 2.3% from the previous 1.9%, which still represents one of the lowest inflation rates in the entire European Union (EU) and remains close to the price target from the ECB (2%).
It should not be forgotten that just a year ago inflation was at its highest point in recent decades. In July 2022, prices reached 10.8%, but from then on they began to moderate -very gradually- to the levels currently registered, close to the ECB’s target. The most difficult rate to reverse is the underlying rate, which in July of a year ago was at 6.1% and today remains at the same levels.
Specifically, this reference, which does not include fresh food or energy products in its calculation, rose again above 6% after the fall in June and stood at 6.2%, four points above the general figure.
This rate will be, precisely, the reference for the VAT reduction on basic foods that the Government has extended until December 31 to be maintained until then or not. And it is that the Executive specified that if this underlying rate falls below 5.5% in the month of September -data that will be known in October-, as of November 1, said VAT reduction will not be applied.
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