Inflation Reaches Fresh Highs as December Price Measures Spark Debate in Spain
Government officials reaffirm December measures aimed at reducing the share of spending that Spanish families allocate to groceries and food prices. The plan also contemplates new steps if inflation remains stubbornly high, according to statements from the Minister of Agriculture, Fisheries and Food, Luis Planas, shared at a breakfast organized by the European Press.
Planas explained that the current cost trend is moving downward and that families should not expect immediate relief simply from price declines. He noted that the impact of price shifts along the entire food chain—from farmers to consumers—unfolds over a longer period, not over a day or two. He mentioned that if volatility subsides, prices could settle on a plateau with only light oscillations rather than sharp fluctuations.
Inflation rose again in February, reaching 6.1 percent. Planas acknowledged public concern and emphasized that the grocery bill represents roughly 15 percent of a typical family budget. He referenced the December 2022 measures and indicated that the true effect of price changes will become clearer with the National Institute of Statistics data released on March 14. He explained that January saw a strong pause in price increases due to VAT reductions on certain foods, and the February outcome remains uncertain pending INE’s deeper analysis, which will inform further actions if needed.
The INE reported that inflation stood at 6.1 percent in February, up from 5.9 percent in January and higher than December’s 5.7 percent. The agency noted that, despite VAT reductions on a broad food basket, prices for electricity, food, and non-alcoholic beverages rose year over year, with a monthly uptick of 0.8 percent in food and soft drinks. These trends reflect a broader pattern of cost pressures across households.
Planas stated that the rise in the shopping cart is not a sign of a temporary anomaly but a derivative factor of the ongoing conflict in Ukraine. He added that there are relatively few direct references in the news to European Union price reductions for food, pointing to Hungary as an example where a government-imposed price cap has been used. He cautioned that such measures are not universally effective and urged careful consideration of their consequences. He noted that the coalition government, formed in 2022, faces diverse political perspectives, but decisions rest with the Council of Ministers.
In his remarks, Planas argued that price increases in the grocery sector are influenced by external shocks, including the war in Ukraine. He remarked that there are limited examples in Europe of sustained price relief and highlighted that Hungary’s approach has not yielded universally positive results. He stressed that the government will continue to assess measures based on objective price data and economic conditions, and that any policy response will be guided by the best available information from official sources and independent analyses. [Attribution: Planas statements; INE data; European press briefings]