Inflation on Spain’s food prices reaches record levels despite VAT cuts in January

Fresh food prices in Spain recorded a significant rise in February, up 16.6% year-on-year, one point higher than in January, driven by rises in vegetables, legumes and meat, according to final data released by the National Statistics Institute (INE) on Tuesday, March 14.

The government approved a reduction in VAT on some basic food products at the beginning of the year, but although Economy Minister Nadia Calvino said the shopping basket had begun to stabilise, food prices have continued to rise.

Among foodstuffs, the price of sugar shot up by 41.7% year-on-year, while milk is 31.3% more expensive and oils and fats by 26.7%. This was followed by fresh vegetables and cereals and derivatives (20.1%), as well as dairy products (20%).

Other food preparations (17.8%), mineral water, soft drinks and juices (17.7%), eggs (16.6%), coffee, cocoa and infusions (16.4%), pork (15.4%), poultry and other meat (15.2%) also rose, potatoes and potato preparations (14.5%), beef and veal (12.7%), vegetable preparations (11.5%), fresh and frozen fish (10.1%), canned fruit and nuts (9.6%), bread (9.5%), sheep meat (8.8%) and fresh fruit (7.2%)

The core inflation rate was at its highest level since INE started reporting it in 2002 and  reached its highest rate since December 1986.

One Spanish resident tweeted: “I live in Spain, for the past few years in the summer in these small Andalusian villages they cut off the water at night. Food prices in the shops are around 35-50% up. We only buy the very basics. Leeks and cherry tomatoes seen now as a luxury. All very sinister.’

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