The price of food is out of control and milk, eggs and oil rise more than 20% in a year

Vega market. / Arcadio Suarez

The drop in gasoline contributes to moderating inflation to 10.5% in August, but the basics of the shopping basket continue to shoot up

Clara Dawn

Bad news for consumers' pockets continues. It is true that the upward price spiral seems to have reached its peak, with inflation standing at an interannual rate of 10.5% in August, three tenths below the peak of 10.8% reached in July (its highest level since September 1984). However, the slight moderation that ends a streak of three consecutive months of increases has fallen short of the initial estimate.

In the Canary Islands, inflation stood at 9.5% in August, one point below the national; although, in monthly rate, the Canary Islands was, together with the Balearic Islands,
the only region where prices rose (they went from 9.4% to 9.5%).
Inflation in the islands returns to 1985 levels. The concern focuses on core inflation, which does not take into account fresh food or energy, which stands at 6.3%.

The National Institute of Statistics (INE) anticipated a few weeks ago that the figure would stand at 10.4%, one tenth below that finally registered. And we must not forget that the consumer price index (CPI) continues to be anchored at double-digit levels that keep
alerts Government, companies and householdsbefore the
loss of purchasing power that has been generated in recent months.

For its part, the
Underlying inflation –considered the most persistent when excluding unprocessed foods and energy products– also increased three tenths in August, to 6.4%. It is
its highest value since January 1993.

  • 6.4%

    it is the highest level recorded in the core CPI since January 1993.

  • WIDESPREAD RISES. Of the 57 headings analyzed by the INE, a total of 20 recorded double-digit increases.

In general terms, it can be concluded that the
drop in gasoline prices in recent weeks it is behind the moderation of the CPI compared to July. But the weight of electricity and food prices has prevented a further decline.
Above all, the rise in prices of many basic products is of concern.; essential goods in which the demand does not usually vary excessively as they cannot be substituted. Namely,
low incomes affect a lot.

13.8% more for food and drinks

The Spanish paid in August
13.8% more than a year ago for food and beverages non-alcoholic, three tenths above the rate registered in July and the highest since the beginning of the series in January 1994. There is only one index that makes up the CPI, that of housing (which groups supplies such as water, electricity or gas) which has registered a higher increase of 11%.

But rising food prices are what most worries families, with
increases of more than 20% in the last year, double the general index, in basic essentials of the pantries It is especially surprising the case of
first-order products such as milkwhose price has shot up almost 26% in the last 12 months.

oil has done so by 24%, while the rise in
eggs around 22%. Other regulars of the shopping cart such as
cereals have become more expensive by 21%, while the
bread wave
beef they do it in the environment of 15%, the same as the
legumes and the
fresh vegetables.

In total, of the 57 headings that the INE technicians publish month by month, 20 of them register double-digit increases in just one year. And he stays close
fresh fishwith an increase of 9.9%.

If the focus is on the rise experienced in just one month, the data also calls for caution. Milk becomes 2.5% more expensive between July and August, while cereals do so by 1.4%.
Tourism and hospitality also rose 0.8% in the holiday period par excellence, a figure that climbs to 8.5% when compared to August 2021.

The Bank of Spain warned this week of the
upward pressure that the leisure, restaurant and tourism sectors they are exerting on inflation. And it is that in all three it is higher than that registered on average in the euro zone.

autumn forecast

From the Ministry of Economy they trust that
inflation will moderate in the autumn months. They hope that there will be a moderation in demand and that the help of measures such as the gas cap will already be noted, in addition to the drop in fuel prices.

However, even the most optimistic analysts have been forced to reconfigure their pools for the year as a whole. The last to do so were the Funcas experts, who yesterday raised their average annual inflation forecast from 8.9% to 9.1%. "Short term,
the key to success will be that the measures of the central banks have a real containment effect» in prices, as explained by Pedro del Pozo, director of investments at Mutualidad de la Abogacía.

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