Soaring food prices sees inflation rise in Catalonia

Inflation in Catalonia increased in September to 3.4%, the highest level seen since April, according to data published on Friday by Spain's National Statistics Institute.

The consumer price index has now risen for three consecutive months. In August, the indicator stood at 2.5%. 

In September 2022, the inflation rate stood at 8.5%, and the indicator was trending downwards at the time after the summer's all-time highs due to cheaper electricity, gas and fuel prices. On the other hand, this year these products have caused the rise in inflation.

The latest rise in inflation has been driven mainly by the prices of food, up 9.6% compared to last year. Sugar (+45.8% compared to last year) and oil (+38.7%) have impacted the CPI especially. 

As for the core inflation, which does not take into account the prices of unprocessed food and energy products, it fell for the second month in a row and now stands at 5.8%. When this indicator falls below 5.5% in all of Spain, the government will eliminate the reduction of VAT on basic foods.

Fuel prices rising

The data published this Friday also show that the price of fuel in Catalonia rose by 2.1% in September compared to the previous month. However, if compared with September 2022, fuels are cheaper this year (-2.2%).

The price of services linked to tourism and hospitality have also grown in comparison to last year, up 21.4%. 

The main decreases have been seen in heating, electricity, and water distribution (-26%).