MADRID – The price of olive oil rose by 8.7% in August and is now 52.5% more expensive than a year ago. This makes it the product that has increased in price the most in the past year. A striking example of the inflation that plagues Spanish consumers.
The latest Consumer Price Index (IPC) based on data from statistics agency INE shows that food prices increased by 0.2% in August and have already risen more than 5% this calendar year. Compared to August last year, the increase is even 10.5%. It is the expenditure category that has increased the most and takes up a large part of the family budget.
Fuel prices in particular contribute to inflation
Despite the high inflation, it is mainly fuel prices that contribute to the 2.6% inflation increase in August. The price of diesel rose the most, by 8.6%, while petrol rose by 5.7% but has seen a total increase of 22.1% since January.
More expensive holidays
The tourism sector also saw price increases. The price of holiday packages increased by 3.5% compared to July. Ferry trips and international flights became 14% and 10% more expensive respectively. Travel packages to travel through Spain have increased in price by as much as 62.5% since January.
Gas, fruit and potatoes cheaper
On the other hand, some prices also fell. The price of gas fell by 6.8% and is now 21% cheaper than last year. The prices of some food products, such as fruit and potatoes, also fell by 4.7% and 3.3% respectively.
Electricity and gas are areas of concern
These price increases and decreases have a varying impact on different sectors and pose a complex challenge for Spanish families, who are now experiencing even more pressure on their monthly budgets. Essential services such as electricity and gas are of particular concern, given their impact on household expenditure and their recent price volatility.
Overall, inflation remains below 3% and the Ministry of Economy has highlighted the positive impact of this on the country’s competitiveness and wage purchasing power.
Also read: Unprecedented drought sparks olive oil ‘panic buying’ in Catalonia
