Food prices and electricity costs have risen recently, pushing inflation higher in February. The latest final figures from the National Statistics Institute indicate inflation moved down slightly from the agency’s earlier forecast, with core inflation, which excludes energy and unprocessed food, edging up to 7.6 percent. This remains the highest rate since December 1986 and is a focal concern for households watching every item on the shopping list.
Even with temporary VAT exemptions on essential goods and the reduction of pasta and oil taxes from 10 to 5 percent starting January 1, food inflation surged to 16.7 percent in February. This figure surpassed January’s 15.4 percent and the record 15.7 percent logged in December. Food and beverage prices rose by more than a point in January, reaching about 16.6 percent overall. Meat prices climbed after a period of decline in 2022, while fish and crustacean prices remained relatively persistent.
Electricity costs also rose. Compared with January, electricity prices increased by 12.4 percent, reversing a previous monthly decline. Caixabank Research notes that the regulated electricity tariff (PVPC) averaged about €200 per MWh for February, a level slightly below two months prior but representing a 52 percent jump from January.
On the other hand, fuel and mineral oil prices still showed a different pattern, with the February 2022 decline contrasting against the current stability in passenger transport. Notably, a 100 percent discount was applied to 77 intercity bus lines offering medium-distance services on state-owned routes since February 1.
From the government’s perspective, inflation data remain volatile in the first half of the year, yet CPI rates are expected to be roughly half of what was seen in 2022. Nadia Calviño, the government’s vice president, has underscored this view. A year earlier, in February 2022, the energy and food price shocks, aggravated by the Russian invasion of Ukraine, pushed inflation higher while the economy faced a 9.8 percent overall rate and a 3.4 percent core rate. These figures illustrate how energy and food costs have driven price dynamics over the past year.
Transportation and electricity prices
Official sources from the Ministry of Economy note improved performance in the transport sector. Public transportation usage rose as measures to support it and the reduced consumption of fuel oil led to a significant monthly drop in urban public transit costs, down by about 7.2 percent.
On the downside, food prices continued to rise, especially for fresh produce. Reduced supply caused by adverse weather contributed to higher prices for pulses, vegetables, and fruits.
Electricity prices also picked up after a period of decline in previous months. Still, government officials emphasize that Spain remains among the lowest inflation rates in the Eurozone even as these costs fluctuate.