The government faces pressure to curb the rising cost of living, particularly the price of groceries that strain family budgets. Spain’s Agriculture Minister has signaled that taking action on food prices is reasonable, following a period when the administration hinted at possible price controls or price disclosures for distribution channels. This shift comes as Prime Minister Pedro Sánchez advanced a constitutional event, paving the way for measures aimed at stabilizing prices. Yolanda Díaz, leader of Unidas Podemos within the coalition, has also highlighted the impact of price growth on households, including pressures on mortgage costs.
The government acknowledges that many households are sensitive to food-price increases and recognizes its mandate to respond. Officials say there is a clear intent to craft specific measures to address the acceleration in food costs, and that the executive branch is actively working on options to relieve households from this burden.
The coalition is negotiating policy steps to reduce the amount families pay at the supermarket, with discussions taking place in the lead-up to the Christmas period. Many households face reduced purchasing power as wages lag behind the consumer price index, and certain staple foods have risen in price over the past year, contributing to broader concerns about affordability.
During a recent briefing, Yolanda Díaz challenged the public to consider who profits from the current price dynamics, arguing that increases in consumer prices have been mirrored by higher profits for large food distributors. She emphasized the need for measures that ease household pressure as part of the broader economic strategy.
Increased mortgage reserve
Díaz leveraged a gathering with home care workers to press the coalition partner for stronger price-containment measures in the upcoming government aid package. The Labor Ministry is exploring ways to broaden this package, potentially extending a cap on annual price changes and addressing mortgage costs tied to fluctuating Euribor rates. The aim is to prevent a situation where rising mortgage payments outpace wage growth, which could strain family finances further.
The unions have called for concrete actions such as setting or freezing maximum prices for essential items and creating a relief fund to support families facing higher mortgage bills. Since mid-year, major labor federations have urged the government to advance these proposals within the framework of a revenue agreement, which has yet to be finalized.
Negotiations inside the executive remain ongoing, and the coalition has not settled the exact scope or mechanism of the new measures. After the constitutional events, the Prime Minister stressed a focus on protecting middle and vulnerable households, signaling that he is pursuing an initiative to curb food prices without detailing the full plan. The term he used to describe this approach had previously been introduced by the vice president, and lawmakers continue to debate the precise language and policy tools.
In the days that followed, Díaz did not repeat the earlier terminology, but she underscored the potential benefits for consumers and highlighted the role of large distributors. Some suppliers, unable to secure an agreement, voluntarily presented a basket of discounted essentials to ease pressure on shoppers while negotiations continue.