Waking up to June 2022 in Spain means facing higher daily expenses that have crept up over four decades. The Organization of Consumers and Users (OCU) reports that families will spend at least 500 euros more this year on groceries. Eight out of ten supermarket items cost more than they did a year ago. The Savings Banks Foundation (Funcas) says inflation will squeeze household budgets by about 800 euros in 2022. Each additional percentage point of inflation driven by higher energy bills reduces purchasing power by roughly 7.6 billion euros for households, Funcas notes.
May’s preliminary inflation data, to be detailed tomorrow, reinforces the sense that life today is significantly pricier than a year ago. A breakfast at a bar now costs about one euro, a work-friend restaurant menu has risen by two euros to 14.75, and the typical shopping basket has shifted toward specialty and store brands, making up about 43% of daily purchases over the years.
Behind these changes stand rising electricity, gasoline, grain, and sunflower oil prices. Since then, prices in the essential sector have kept climbing. Latest CPI figures show electricity costs 34.9% higher than a year ago, with even larger increases if the regulated rate applies. CPI rose 8.7% in May due to higher fuel and food prices. Core inflation, which excludes energy, sits near 5%, the highest level since 1995.
resignation
After a quick breakfast of sandwiches and coffee, and with home prices at 3.75 euros for a typical morning, driving a personal car can hit the family budget hard. The average price of gasoline topped 1.358 euros per liter a year ago and diesel 1.221. Today, both exceed two euros per liter. Filling a car’s tank can easily pass the 100-euro mark. Despite this, traffic and commutes persist. A supermarket visit often feels like surrender, with prices clearly higher than a year earlier.
Cesar Valencoso, a distribution specialist at Kantar Consulting, notes that consumers adapt their habits and keep shopping. The volume of supermarket shoppers does not shrink when prices rise. Instead, people absorb inflation, for better or worse, and private-label products are pushed by chains to project low prices and managed costs. Many shoppers now seek cheaper options, while two-thirds still prioritize quality. Premium cuts stay available, yet family packs of chicken breast cost about 12% more than last year.
The average annual salary in Spain hovers around 26,832 euros, roughly 2,236 euros per month across 12 payments. Compared with figures two decades ago, salaries appear relatively lower, and purchasing power is eroding for many households.
Tourism growth compounds the outlook, with experts signaling prices may not fall before September and could keep rising through the year. If inflation retreats soon, prices might ease; otherwise, they could stabilize at higher levels for longer, Valencoso suggests.
The inflation picture from the OCU is troubling. Prices for products and services used by companies have risen, and some industries act to gain in this volatile price environment, according to Esther Lorente, head of the OCU in Catalonia. The organization highlights notable increases in white-label olive oil (53.6%), white-label sunflower oil (49.3%), dishwashers (49.1%), and margarine (41.5%), with pasta, bananas, and sliced salmon rising 30–40%.
NielsenIQ reports price hikes in about 73% of categories over the past year, with oil up 75% and margarine up 35%. Pasta, industrial pastries, and toilet paper also show gains. Patricia Daimiel, NielsenIQ’s director for Southern Europe, notes that price increases hit staple foods that households cannot easily drop or substitute, placing a heavy burden on the grocery cart.
Origin costs
Distribution chains argue that competition has tempered some tensions, but initial price levels remain higher. The Agriculture Ministry data show cereals up around 80% in a year, oil costs up about 82% across two seasons, and eggs about 60% more expensive for farms than a year ago. The overall rise in costs reflects grains, energy, and transport. Ignacio García Magarzo, managing director of the Asedas supermarket employers association, adds that price increases occur earlier in production and manufacturing and become more moderate as they reach the consumer distribution chain.