Prices for goods and fuels have been easing since the early days of summer, yet the retreat is short-lived as September brought another uptick. Wages and purchasing power continue to lag behind the cost of living for many households across the region.
In Alicante, the consumer price index (CPI) for September shows a year over year increase of 9.2 percent, according to data released by INE on Friday. The trend is more favorable than July, when inflation stood at 11.2 percent, but the province still experiences faster price growth than the national average. At the national level, prices rose by 8.9 percent from the previous year, a pattern that has persisted since the start of last year.
Several sectors explain this regional gap. Footwear prices rose considerably, up 12.4 percent in Alicante versus 4.4 percent nationwide. Hotel costs also climbed, reaching 20.3 percent in the province compared with 18.7 percent nationally. Fuel prices, after easing a bit in the summer, remained 13.6 percent higher than a year ago in the province, while the rest of Spain saw an 11.5 percent year over year increase.
Perhaps the most striking development is in food prices, which show the sharpest rise in the INE series dating back to 1994. Food prices climbed 14.7 percent across the country, while Alicante recorded a 15.5 percent increase, eight tenths higher than the national rate. Calculations by the Consumers and Users Organization indicate that these added costs will, on average, burden a family with about 820 euros more annual spending on food nationwide.
Prices at a fish market stall in Elche illustrate the broader trend, with local vendors facing higher costs that feed into local pricing dynamics.
Among the few items that are cheaper in Alicante, electricity costs stand out as a relative exception. The provincial electricity bill is about 23.6 percent higher than last year, whereas the national average increase stands at 28 percent, offering a modest relief relative to the broader country trend.
Fees
Even with September’s moderation, price growth has outpaced wage increases for most workers. So far this year, 73 collective bargaining agreements cover 151,768 workers, with an average wage rise of just 3.3 percent. In practical terms, the wage gains cover only about one third of the cost of living increase. Considering the average declared income for Alicante workers, around 16,900 euros annually, the result is a loss of roughly 1,000 euros in purchasing power per year for many households.
Many rural workers who do not see contract renewals face even stronger salary freezes, worsening the effect of inflation on households in those communities.
Additionally, Alicante’s wage growth has outpaced the national average of 2.61 percent in the same period, underscoring the uneven regional impact of inflation on earnings.
The average salary in the community is 8.8% lower than the state average
The situation has drawn sustained attention from unions and employers alike. Unions have urged businesses and policymakers to resume comprehensive negotiations and seek a national level framework agreement capable of guiding compensation trends across sectors to mitigate inflation’s impact on family budgets. In the Alicante region, there is particular emphasis on securing salary gains that keep pace with rising living costs, a concern shared by multiple regional sectors that report relatively low salaries compared with the wider state.
CEV Alicante, representing local business interests, presents a different view. The association notes sharp increases in raw materials, energy, and fuel costs that cannot always be passed through to product prices without harming competitiveness. Company leaders argue that wage increases must be balanced with the viability of firms, citing examples where increases for certain categories exceed those granted to civil servants. The stance is pragmatic: firms negotiate with flexibility and seek to preserve sustainability while supporting wage growth where feasible.
Only 24.5 percent of workers covered by agreements signed so far this year have a salary review clause guaranteeing purchasing power if prices rise faster than agreed. The distribution of such protections varies by industry. In manufacturing, protections are relatively common, while in construction they are scarce, and retrospective application of these clauses is often limited.