If a few months ago families felt the shock of rising gasoline and electricity bills, today the supermarket cart looms as the new pressure point. The climb in food costs compounds budgeting strains even when electricity-cost measures help curb overall inflation, which remains stubbornly high in some regions. In Alicante, inflation has reached double digits in recent months, while the national rate shows a still-elevated pace, and food prices continue to rise despite policy efforts to stabilize the economy.
Recent November data from the National Institute of Statistics confirm that the shopping basket has become 15.3% more expensive than a year earlier, with Alicante experiencing especially strong growth in food and non-alcoholic beverages, now up by more than 16%.
According to the Family Budget Survey, average household expenditure in this autonomous community reached 4,564 euros last year. For Alicante families, this means an additional 730 euros are needed this year to maintain the same pantry of products.
Purchasers at the Alicante Central Market can attest to the impact on daily life as rising costs squeeze household budgets. For households already facing mortgage payments and higher fuel or heating costs, the situation is worsened by rising interest rates and the possibility of further ECB increases this Thursday.
Several staple products have seen sharp price increases, underscoring the pressure on everyday shopping: potatoes up 21.5% nationwide, eggs up 27.1%, milk up 30.9%, liquid oils up 31.5%, and candies reaching a record 50.2% higher than a year ago.
How much will pensions increase in Alicante next year?
Several organizations have weighed in on policy impacts. The OCU has filed concerns about a temporary VAT adjustment, while workers’ unions like UGT have criticized profit margins on essential goods. In contrast, CC OO argues price controls are needed in certain markets to prevent wide swings in affordability.
Inflation still doubles the rise in wages agreed in the deal
Overall, most products and services continue to see rising prices despite government efforts to contain them. Apart from electricity and some electronics, price increases persist. Fuel, car maintenance, and related services are notably more expensive, with motor vehicles up about 10.7%, furniture around 8.6%, hotel services roughly 7.2%, and personal care such as hairdressing rising about 7% compared with the previous year.
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The CPI moderation has somewhat softened the erosion of purchasing power, though it remains significant. While the CPI has surged around 7%, the average wage growth in Alicante so far this year sits around 3.22%. The cost of living has effectively risen faster than wages for many workers. Last year, the average salary stood at about 17,649 euros, and current data show the power of earnings has fallen by roughly 670 euros annually. Workers under sectoral agreements tend to fare slightly better, with average increases near 3.26%, while those on company contracts have seen closer to 2.24% raises.
How much will housing loans increase in Alicante?
The situation is especially challenging for households that must contend with higher living costs alongside rising mortgage payments. Increases approved by local authorities and market movements in interest rates are expected to push loan costs higher, with the supervisory body anticipated to approve further increases in coming weeks. A potential additional uptick of around half a percentage point in the official rate could come into play.
For now, the Euribor trend is clear: after ending November near 2.828%, the typical mortgage payment in Alicante has climbed from about 397 euros to roughly 530 euros per month. That translates to an extra 2,020 euros in annual housing costs, a figure likely to rise further if interest rates climb toward 3.5% early next year, as many institutions anticipate.
Pensions to increase by 8.5 percent next year
November’s inflation data show an average 8.5% rise over the past twelve months, which informs the revaluation of pensions for the coming year. In Alicante, this adjustment could benefit more than 298,000 retirees, lifting the typical pension from about 945 euros to around 1,025 euros on average.