Islanders will barely notice the drop in the annual Consumer Price Index (CPI) recorded in the Canary Islands last month, despite being the only autonomous community where all prices have dropped. . The reason for the small impact on the pockets, The slowdown in the CPI increase in the Islands was only three-tenths: It rose from 3.9% in June to 3.6% in July.. The data presented yesterday by the National Institute of Statistics reflected this. The monthly change in prices was only 0.1% less, due to the strong 13.2% drop in clothing and footwear in July..
Similar Core inflationenergy products and unprocessed food prices are excluded, Canary Islands remained steady at 6.2% last monthContrary to what happened across the country, it rose from 5.9% to 6.2% after two months of decline.
Although the overall decrease in prices compared to June is practically unnoticeable, The canaries saw a more marked increase in the cost of food, which hit them the most and rose 0.7% in July.. This data is converted again The Canaries are in the community where shopping cart prices have risen the most for another month. In addition, entertainment and culture (+2.2%) and hotels, cafeterias and restaurants (+0.7%) also recorded significant increases in prices last month.
The July CPI decline in the archipelago is not something to tinker with, especially if one analyzes how prices have been over the past year. CPI increased by 3.6% in the Canary Islands compared to the same month of 2022. In this way, the Archipelago, despite the most severe damage, followed the price increase trend of all autonomous communities, surpassing only the autonomous cities of Ceuta (4.3%) and Melilla (4.1%).
Everything is more expensive in the Canary Islands than it was twelve months ago: food increased by 13.1%followed by hotels, cafes and restaurants (+7.7%), alcoholic beverages and tobacco (+6.5%), and entertainment and culture (+5.4).
The shopping basket that worried the Islands the most was the basket that rose the most in the country with an increase of 13.1% and moved it away from the national average of 9.7%. That’s why it’s twelve months in a row that CPI hits Canaries in Spain the most when they go to their workplaces to stock up on home furnishings with essential products and soft drinks.
Alcohol and tobacco prices fell by only 0.1% in July.. However, these products have become 6.5% more expensive in the Islands in the last year. Still, the Canary Islands are among the communities where prices rose the least, along with Galicia (6.5%) and Asturias (6.4%).
It was also 0.7% more expensive to visit hotels in the Islands, eat sandwiches at their cafeteria or eat at their restaurants in July.. Although such activities have fluctuated in recent months, the overall trend is upwards as the prices of these businesses increased by 7.7% last year.
Other prices that went up were those related to entertainment and culture. In July, Frequent movie ticket purchases in Barbie and Oppenheimer’s first blockbuster months cost the canaries 2.2% more than the previous month. The increase in June was the highest increase in the last 12 months in the Islands with an increase of 5.4 percent.
As for the price drops, apparel and shoes were the most important, with Spain’s largest Islands down 13.2%. because the country recorded an average decrease of 9.7%. It was precisely the sales of these substances that formed the CPI in July and caused its decline in the Canary Islands.
nor house price dropped but only 0.1% last month. If we look at the annual figures, the prices of these infrastructures in the archipelago have decreased by 11.2% compared to 2022.
The price of transportation for personal use in the Islands was reduced by 0.2% in July. Thus, the price of private mobility for Canaries fell 3.1% in one year. At the national level, these shipments increased their costs by 0.6%.
CEOE refuses to meet ECB’s inflation target for Islands
The Tenerife Confederation of Employers (CEOE) announced yesterday, after learning the CPI data, that despite the decline recorded in the Canary Islands in July, it will push prices upwards due to the rise in wages and fuel costs. Therefore, businessmen consider it likely that inflation targets will not be achieved.
Pedro Alfonso, president of the Tenerife employers’ association, underlined the fact that the Canary Islands are chaining another month on the way down, despite a recovery in the CPI across the country. Thus, while the country average increased from 1.9% in June to 2.3%, this rate increased from 3.9% to 3.6% in the Canary Islands.
For Tenerife’s CEO, the decrease in the CPI in the Canary Islands is due, among other reasons, to the fall in energy prices and raw materials, as well as “eliminating bottlenecks in the industry” last year.
Afonso added that the changing prices of energy products in 2022 caused a significant volatility in the general exchange rate. therefore, it is better to focus attention on the base ratio, which will merge anyway.”
For this reason, the CEOE insists on continuing to monitor the economy “with one eye on daily and the other on medium-term forecasts”, as it is “not very clear” whether the situation will continue over time. especially since the economy of tourist sending countries is in a “complex” state. If this situation continues, the Archipelago may have “some problems” with tourist bookings for next season.