Inflation Trends in Alicante: Food Costs and Household Impact

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A modest relief appears on the horizon for many households, though the relief is far from enough. The annual increase in food prices in the Alicante province eased in the latest data, showing a 12.6% rise, four percentage points less than the prior year. This marks the first meaningful slowdown in this indicator since the previous month and the longest stretch of higher prices in more than a year. Nevertheless, consumer groups warn that this figure remains far from reassuring and continue to call for stronger measures to protect the budgets of the most vulnerable families.

Beyond the moderation in food inflation, the overall consumer price index rose again last month, though at a slower pace for some categories. In Alicante the broader index increased by 3.2% to 4.3% year over year, placing the province about two tenths above the national average. This uptick reflects uneven pressures across different sectors, even as some items cooled.

Areas such as housing maintenance and services, transportation, and everyday goods showed distinct patterns. Housing maintenance costs remained elevated, while everyday services including car-related expenses and hospitality saw notable increases. Health and personal care sectors also recorded price climbs, with hairdressing and other personal care services rising by around 7% on an annual basis in some markets.

In contrast, certain categories moved downward. Transportation services fell by approximately 10.4% due to lower fuel prices and a reduction in passenger subsidies. Telecommunication services also became cheaper, contributing to the mixed inflation picture seen by consumers.

Development of food price

Overall, the shopping cart remains a significant portion of household fixed expenditures. In Alicante, food inflation reached 12.6% compared with 16.6% in March, a decline that outpaced the national drop from 16.5% to 12.9%. Yet this relief is tempered by wage growth that lags behind inflation, with average contractually agreed pay increases around 2.84% through April. The result is a clear erosion of purchasing power for many families.

Experts emphasize that the persistent inflation trend hurts local economies. The Valencian Consumers and Users Association notes the need for continued support, including measures such as VAT relief on essential items and subsidy programs for mortgage interest where households face greater financial strain. The association also points to the importance of policies that preserve and even expand relief measures in the near term.

One of the stalls at the Alicante Central Market

The general secretary of the Valencian Community Consumers’ Union calls for broader assistance for families struggling to cover daily purchases. He also advocates extending the VAT discount on meat and fish and supporting longer periods of eligibility for these adjustments as prices remain volatile. In April, several food categories showed double-digit inflation, with sugar rising by over 43%, milk around 27%, potatoes nearly 20%, cereals and derivatives up about 16%, and pork up by roughly 15% year over year.

Food prices have risen for more than a year since the onset of the Ukraine conflict. The increase began modestly in late 2021, but by April of the following year prices spiked sharply and continued climbing through last winter. After peaking in February, the annual pace of food inflation softened in March and, in April, slowed further in Alicante to 12.8% after a high of 16.9% earlier in the period.

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