Simon Hunter
INFLATION in Spain fell to 3.2% in May according to the country’s National Statistics Institute (INE), but the rate for foodstuffs remains stubbornly high at 12%.
The overall rate for the fifth month of the year was down nearly a percentage point compared to April, from 4.1%.
Inflation peaked in Spain in July of 2022 at 10.8% due to the effect of Russia’s invasion of Ukraine, but had been steadily rising since mid-2021 due to the global supply crisis caused by the coronavirus pandemic.
The main fall in the inflation rate is thanks to a drop in the price of energy. According to figures cited by online daily El Confidencial, electricity in Spain is 35% cheaper than a year ago, gas 8.5%, and fuel for vehicles 12%.
As for foodstuffs, the 12% inflation rate has prompted the central government into action, and on Monday the administration announced that it would be extending VAT cuts on essential staples beyond the June 30 date when the reductions were due to end.
The price of food rose 0.4% in May compared to the month before.
These high prices are particularly damaging for low-income households, which dedicate a higher proportion of their budgets to food.
Read more:
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- Families in need have to wait three months to get access to a food bank in Alicante
- Spanish supermarkets are NOT profiteering at the expense of households in Spain, according to new government report
