If there is one thing that has become clear in recent months, it is this: Adverse economic storm becomes increasingly complex for Spanish families to face Valencian in general and in particular. Inflation continues to rise rapidly, especially in one country. The increasingly prohibitive shopping cart for the average pocket. Correspondingly, mortgage payout remains a hard-to-crown peak with some rate hikes to 3.5 percent last week, and the cost of filling up deposits hasn’t even come close to what should have been done before. The start of the war in Ukraine. However, and despite all these negative conditions, the reality is that consumption is resisting. And that our purchasing power is gradually decreasing.
It was clarified last week by the wage-based ‘Addeco Employment Opportunities and Satisfaction Monitor’, which reflects the fact that the average salary in the country is at an all-time high of 1,823 euros. The purchasing power of the citizens is at the level of 1996 at the end of the last century. VÃctor Tatay, regional manager of Adecco Levante andThe reason for this decline, which can be mitigated by the increase in the minimum wage this year, is linked to “pumping inflation”.. This has already reached 6% again in just two months of 2023. The translation, “a greater tension,” adds Tatay for “purchasing power.” That is for consumption.
higher food cost
The shopping cart is the best example of this. in February It’s up 17.1% over the previous year, yes some staple foods like fat, milk or sugar are over 33%. These high increases are causing some products to be more and more out of our usual purchases. As he explained JoaquÃn Cerveró, spokesperson for the Anged Community of Valencia (National Association of Large Distribution Companies), said that “food consumption, especially some of the fresh produce (eg fish and meat) suffers. For those who have not had a VAT reduction in this month of January”. Of course, the return on which average purchases may decrease is reflected mostly on “offers and white brands”.
However, despite this fact and the rise in prices, commercial sales are resisting. According to the latest data of the National Institute of Statistics (INE) for December and January, The deflate index, which eliminates the effect of prices on retail trade sales in the autonomous region, was a few points better than the end of 2018 and the beginning of 2019, when the pandemic had not yet disrupted social life.
By pointing to the same line, Cerveró assured: both personal equipment – fashion, accessories, cosmetics – and home or technology are already “close to normal values”. Or the same thing, that consumption does not fall, despite the complex situation.
The hotel industry is developing
same thing happens In other environments, such as the hotel and catering industry, which increased its turnover in Spain by 44% compared to 2021 last year, according to INE, an improvement workforce is predicted in the coming months, with “amazing growth” in Cerveró’s words and Tatay’s pointing out. to get “good returns” thanks to the acceleration in sectors such as tourism. Because after a downturn and despite tough economic conditions, consumption still seems to be resisting. At least still.
Source: Informacion
James Sean is a writer for “Social Bites”. He covers a wide range of topics, bringing the latest news and developments to his readers. With a keen sense of what’s important and a passion for writing, James delivers unique and insightful articles that keep his readers informed and engaged.