Inflation ahead of Christmas is once again on the rise in Spain, with November’s Consumer Price Index (CPI) showing a significant impact on household expenses. The overall inflation rate climbed to 2.4%, marking two consecutive months of growth.
Electricity costs surged by 4.9% compared to the previous month, making it the supply with the most substantial influence on the CPI increase. Certain other products and services also saw sharp price increases last month. International flight tickets experienced the highest rise, up by 6.6%. Other notable increases include:
- Women’s clothing: 4.9%
- Children’s clothing: 4.5%
- Women’s footwear: 4.2%
These rises follow seasonal patterns but also highlight underlying inflationary pressures.
Year-to-date and annual trends
Since the start of 2024, electricity prices have climbed 16.9%, surpassed only by chocolate (22.5%) and jewelry (17.7%). Compared to November 2023, electricity is nearly 20% more expensive, while gas and water have risen by 9.4% and 5.6%, respectively.
Over the past year, maritime transport costs saw the steepest increase at 41.9%, with chocolate and electricity following at 21.9% and 19.8%. Conversely, liquid fuels became 16.3% cheaper, leading the list of products with declining prices.
Products and services showing declines
Not all prices have risen. November witnessed notable decreases in specific categories:
- Domestic tourism: -7.6%
- Sugar: -6.7%
- Olive oil: -3.2%
Annual reductions in key items, such as sugar (-11.8%) and diesel (-10.7%), have helped ease inflationary pressures.
Impact on household budgets
Household essentials have not escaped inflation’s grasp. The cost of staple items, such as bread, meat, and fish, continues to rise, reflecting broader economic trends. Meanwhile, hospitality and tourism services have seen price cuts, likely due to the conclusion of the vacation season.
The bigger picture
Energy costs remain a central concern for Spanish consumers. After dramatic increases in previous years, the prices of electricity and gas have moderated but continue to influence overall inflation. Other essential expenses, like rent and community fees, have risen more modestly but contribute to mounting financial strain on households.
Inflation trends over the past year
The evolution of inflation in Spain throughout 2024 reflects a mix of challenges and gradual improvements. Early in the year, inflation was heavily influenced by high energy costs carried over from 2023. However, significant reductions in gas and electricity prices later provided some relief. By mid-2024, inflation had moderated, driven by lower transportation costs and stable prices in hospitality and leisure services. Despite these positive developments, food and household staples continued to show persistent price increases, keeping overall inflation elevated. The International Monetary Fund (IMF) has also warned that Spanish inflation might remain around 4% for the year, reflecting broader economic challenges and a global economic slowdown.
Also read: Inflation falls in September to the lowest level in three and a half years