Analysis of the reduction of living costs
Last July, inflation in Spain experienced a slight decrease, reaching 2.8%, according to the latest report from the National Institute of Statistics (INE). This decrease is partly due to the fall in food prices, which have shown a more stable behavior, with a reduction of 1.1 percentage points, consolidating at 3.1%.
The effect of the tax exemption
The recent application of zero VAT on olive oil has been a key factor in this downward trend. Although global prices have increased by 3.7% since January, the liter of olive oil has experienced a drop of 5.5% compared to June, according to data from the INE.
Cumulative inflation of the last 12 months
Despite this reduction, olive oil has suffered a price increase of 38.5% in the last year, with peaks approaching 70% at different times.
Other foods on the rise
In July, several products such as potatoes and chocolate have seen an increase in their prices. Potatoes, in particular, have risen by 1.8%, due to a bad harvest in France, which directly affects Spanish imports.
The impact of the El Niño phenomenon
Chocolate and cocoa have also experienced significant increases, with rises of 13.7% and 9.4% respectively, attributed to the adverse weather conditions caused by the El Niño phenomenon that have affected harvests globally.
Trends in core inflation
Core inflation, which excludes food and energy, showed a slight decrease to 2.8%. Although the CPI shows some stability, the cost of living compared to three years ago has increased by 15%, reflecting a complex reality.
Effects of summer on prices
The summer period has had a varied effect on prices. While electricity costs have fallen by 4.6%, clothing and footwear offerings have declined significantly, with reductions of more than 10% in many cases. However, tourist services have experienced an increase of 8%.
Inflation data in Catalonia
In Catalonia, inflation has fallen to 2.9%, a drop of seven tenths compared to June. The sectors that have increased their prices the most include hotels and restaurants, with an increase of 4.3%.
Final reflections on the economic context
The combination of factors such as VAT exemption and fluctuations in the harvest has created a complex economic picture. Economic authorities continue to closely monitor these trends to adapt their strategies and ensure the sustainability of citizens’ purchasing power.
