Electricity and food trigger inflation to 10.8% in July

The confirmed CPI data reveals that the drop in fuels has not managed to compensate for the increase of more than 40% in energy or 20% in eggs, cereals or milk

Edurne Martinez

Prices are higher every month. The INE has confirmed what it advanced two weeks ago: the inflation rate has climbed in July to 10.8%, its highest record since December 1984. It represents six tenths more than the previous month due to the increase in the cost of electricity and shopping cart products.

Fuels fall in price compared to June, but this decrease does not compensate for increases such as 41% in energy products compared to July a year ago, or more than 20% in basic foods in the shopping basket such as cereals , eggs or milk.

Inflation is therefore entrenched in two digits and has chained three consecutive months of rises after it moderated in April by 1.5 blow points, to 8.3%. It was just a mirage. In May it climbed to 8.7% and reached 10.2%, despite the implementation of the cap on gas and the rest of the new initiatives of the Executive to try to lower it.

No body now dares to speak of transitory inflation or to blame energy and fuels. What began as an increase in electricity prices more than a year ago has spread to all sectors of activity, particularly food, which has serious consequences for the purchasing power of families, who are concerned how raise the price of your shopping basket.

This is indicated by the core inflation rate (which does not take into account fresh food or energy, the most volatile elements), which also increased six tenths in July to stand at 6.1%, the highest since January 1993.

Oil, almost 30% more expensive

Compared to the prices we had in July last year, fuels have become 34% more expensive (although down 2% since June), energy products 41.4% and heating 44%. On the food side, the situation is alarming. Basic products in the shopping basket such as oil register a rise of 28.6% in one year, eggs and milk 22.5%, cereals 20% or bread almost 15%.

Also in double digits is chicken meat (16.3% more expensive than a year ago), fish (11.4%), beef (14.5%), fruit (15%), legumes (15.5%), potatoes (13.5%) or coffee and cocoa (12%).

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