Record prices hit Canary Islands as shopping costs soar

In July, consumer prices in the Canary Islands reached their highest level since systematic data collection began. According to ISTAC, the Canary Islands‘ statistics agency, inflation is currently 3.4 per cent higher than a year ago. The index rose to 103.62 points. In July last year, it stood at 100.25 points.

Although the latest increase of 0.02 per cent was modest, it marked the sixth consecutive rise. ISTAC has been recording these figures since January 2002, meaning that statisticians can draw on data spanning 295 months. None of these figures was higher than the current one. Even amongst the 25 July figures recorded, this past July was also the most expensive.

Over the first seven months of the current year, prices have thus averaged 2.9 per cent higher than in the same period last year. Inflation had already reached 3.4 per cent in June. At the time, this was the highest monthly figure of the current year, which was significantly above the half-year average of 2.8 per cent. Nevertheless, the labour market performed well in the same month.

Canary Islands: Prices at record high, unemployment falls

In the Canary Islands, 144,168 people were registered as unemployed in July, 4.6 per cent fewer than in the same month last year. On Tenerife, the number of registered unemployed fell by 4.4 per cent to 62,124, as ISTAC further reports. This means that at least a few more people tend to have more money at their disposal to cope with inflation.

However, housing costs have also risen particularly sharply of late. At the same time, few new-build properties have come onto the market: in March, the Office for Statistics recorded 182 completed flats. That was 5.7 per cent fewer than a year earlier. Among other factors, the lack of new-build properties has been driving up prices on the Canary Islands‘ housing market for months now.

Since the survey series began in January 2002, consumer prices on the islands have risen by 62.4 per cent. The Tenerife Business Association also recently warned that a potential ban on imports of Brazilian meat, combined with the current inflation, would have far-reaching consequences for the catering sector in the Canary Islands. Read more about this below: