Inflation is slowing to its lowest level since April 2021. The Canary Islands are thus recording a figure close to the European Central Bank’s (ECB) target. As recently as May, inflation in the Canary Islands stood at 3.2 per cent. It has since fallen to 1.9 per cent.
This is shown by new data from Spain’s National Institute of Statistics, the INE. According to the figures, the Consumer Price Index (CPI) fell by 1.3 percentage points. Compared with May, prices rose by just 0.6 per cent. Last year, the increase had stood at 1.9 per cent.
The INE attributes the current positive trend to price developments for fuel, electricity, food and non-alcoholic drinks. The rise was significantly lower than in June 2022.
EU comparison: positive inflation trend in Spain
The Spanish central government is satisfied with the current trend: „Spain is the first of the major economies in the eurozone to succeed in bringing inflation down below two per cent, the European Central Bank’s reference value,“ officials in Madrid said with satisfaction.
In fact, compared with other EU countries, Spain is experiencing a relatively positive trend in inflation. Just a year ago, the CPI had risen to 10.2 per cent year-on-year, its highest level since the outbreak of the war in Ukraine.
Core inflation – that is, inflation excluding unprocessed food and energy products – also fell this June. At 5.9 per cent, however, it remains at a high level.
Inflation: Shopping in the Canary Islands is becoming more expensive, but not quite as quickly
Nevertheless, all the signs suggest that the rise in prices for the average basket of goods is slowing down as a result of current trends. However, this cannot be confirmed until mid-July.
In May, the Canary Islands recorded a consumer price index inflation rate of 4.9 per cent. This was despite the cost of an average basket of goods having risen by 13.4 per cent compared with the previous year. Given current trends, it is considered likely that the rise in prices will at least slow down.
Inflation: Households in the Canary Islands have to spend 2,500 euros more than last year
Price trends are similar at national level too. The fall in fuel and energy prices led to a lower rate of inflation for the average shopping basket across Spain. However, households in the Canary Islands already had to spend 9.8 per cent more in 2022 to maintain the same standard of living.
Last year alone, households had to spend an additional 2,489 euros on housing, transport, food, holidays, leisure activities and eating out. Even a lower rate of inflation therefore continues to place a growing financial burden on families in the Canary Islands.
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