Inflation rises to record high on Kanaren as unemployment falls

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Consumer prices in the Canary Islands reached 3.8 per cent year-on-year in August, their highest level since records began in 2002.
Prices thus rose for the seventh consecutive month, exceeding the previous high set in July.
The number of unemployed fell to 144,459, 3.8 per cent lower than in the same month last year.

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Consumer prices in the Canary Islands rose in August to their highest level since official records began. The price index stood at 104.209 points, which was 3.8 per cent higher than the figure for the same period last year. These figures are taken from the latest report by the Canary Islands Statistical Office ISTAC.

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This marked the seventh consecutive month of price rises. Compared with July, when the index stood at 103.622 points, prices rose by a further 0.57 per cent. Just twelve months ago, the index stood at 100.432 points. The previous high set in July thus lasted only one month.

The Office for National Statistics began collecting this data in January 2002. Structured data has therefore been available for 296 months. In none of these months was a higher figure recorded than the most recent one. Nor has the price level on the islands ever reached a higher level in any of the 25 Augusts recorded since 2002. Between January and August, prices were three per cent higher than in the same period last year, with the August figure significantly exceeding this average. However, there is at least some positive news to report from the labour market:

Canary Islands: Unemployment falls markedly

The labour market took a different turn in the same month: the Canary Islands reported 144,459 unemployed in August. This represented a fall of 3.8 per cent compared with the same month last year. On Tenerife alone, the statistics office recorded a fall of 3.6 per cent, which in absolute terms amounted to 62,440 people affected.

Consumer prices in the Canary Islands are rising

More jobs are also urgently needed in the Canary Islands, as the price level has risen significantly over the long term: compared with the first month of systematic measurement, it is 63.3 per cent higher.

Local residents notice this particularly when it comes to housing costs: as the housing stock is divided between permanent residences and holiday rentals – and the balance between the two has shifted several times in recent years – high demand has been causing social tensions for years. This is illustrated, amongst other things, by the rising number of mortgages in the Canary Islands. In the Canary Islands‘ tourism sector, rising prices in hotels were followed by a fall in the number of overnight stays.