Inflation is the biggest headache for families since the Ukraine war crisis began almost a year ago now. The biggest problem began with energy, but now the biggest concern is the shopping basket, whose prices have risen so much that the Government had to take action and reduce or eliminate VAT on basic foods. Despite this measure, food rose 15.4% in January compared to a year ago, according to data confirmed this Wednesday by the INE. What’s more, even in a monthly rate (January compared to December) the price of food rose four tenths.
From the Ministry of Economic Affairs, they reveal that if only the prices of food with reduced or eliminated VAT are taken into account, a drop of 1.6% can be observed compared to December. These data in monthly rate (January over December) reflect that bread has fallen by 0.2%, milk by 1.5% or eggs by 1.5%. But they are not the only foods without VAT that became cheaper in the first month of the year, according to INE indicators: fresh fruit (-4.2%), legumes (-1.1%), potatoes (-1%), flour (-2.3%) and cheese (-0.7%). In addition, the VAT reduction from 10% to 5% on olive oil produced a 1.2% price reduction and pasta, 3.5%.
These data in monthly rate (January over December) reflect that bread has fallen by 0.2%, milk by 1.5% or eggs by 1.5%. But they are not the only foods without VAT that became cheaper in the first month of the year, according to INE indicators: fresh fruit (-4.2%), legumes (-1.1%), potatoes (-1%), flour (-2.3%) and cheese (-0.7%). In addition, the VAT reduction from 10% to 5% on olive oil produced a 1.2% price reduction and pasta, 3.5%.
The general CPI fell two tenths in its interannual rate in January to 5.9%, one tenth more than expected in the INE forecast, due to the fact that fuels have risen in price with the end of the 20-cent bonus per liter on December 31. Telephone services and clothing have also boosted the inflation rate, according to data published by the INE.
But the underlying rate continues to skyrocket. In January it reached 7.5%, half a point more than the previous month and the highest since 1986. It exceeds the general index by more than a point and a half. The ministry led by Nadia Calviño indicates that this underlying rate “will reflect the decline in general inflation and energy costs in the coming months.” In addition, it stands out that the general rate has only risen two tenths despite the rise in fuel due to the end of the bonus.
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