According to the latest data released by the National Statistics Institute (INE), the Consumer Price Index (CPI) in the Canary Islands rose by 3.9% in June compared to the same month in 2022. Additionally, the monthly figure increased by 0.6% compared to May.
The increase in prices in the Canary Islands over the past year was primarily driven by higher costs in food and non-alcoholic beverages, which rose by 12.8%. This was followed by increases in prices for hotels, cafes, and restaurants (+7.9%), as well as alcoholic beverages and tobacco (+6.2%). However, housing (-9.4%) and transport (-1.1%) experienced price decreases.
In Spain as a whole, the CPI rose by 0.6% in June compared to the previous month. The year-on-year rate decreased by 1.3 points to 1.9%, reaching its lowest level since March 2021. This decrease was attributed to the moderation in fuel, electricity, and food and non-alcoholic beverage prices, which declined by over one and a half points compared to the previous year, reaching 10.3%.
The decline in inflation in June marked the second consecutive month of decreasing prices, following a decrease of nine-tenths of a percentage point in May, bringing the inflation rate down to 3.2%.
The moderation in inflation in June was attributed to lower fuel prices and reductions in the prices of food items such as fruit, bread and cereals, and meat, vegetables, and pulses. On the other hand, prices for milk, cheese, eggs, and oil and fat increased compared to June 2022.
The INE has confirmed the data released at the end of June, indicating that inflation decreased to 1.9%, the lowest rate since March 2021. The Ministry of Economic Affairs and Digital Transformation stated that the measures implemented have contributed to reducing inflation by nearly nine points in less than a year.
Spain has become the first country among the major eurozone economies to bring inflation below the European Central Bank’s reference level of 2%, as highlighted by the Ministry led by Nadia Calviño.
When excluding the reduction in excise tax on electricity and other tax variations, the year-on-year CPI reached 2.5% in June, which was six tenths of a percentage point higher than the overall rate of 1.9%. This is reflected in the CPI at constant taxes published by the INE.
In terms of specific categories, the transport group saw its year-on-year rate decline to -7.6% in June, while prices for food and non-alcoholic beverages increased by 10.3%, the lowest figure since April 2022. Housing experienced an increase in its year-on-year rate in June to -12.7%.
In monthly terms, the CPI increased by 0.6% in June compared to May, following no change in May over April. The price changes were influenced by a 2.1% increase in leisure and culture, a 0.9% rise in hotel, cafe, and restaurant prices, an 0.8% increase in housing prices, and a 0.8% decrease in clothing and footwear prices.
In summary, the prices that increased the most in June compared to the previous month were potatoes and potato preparations, fresh fruit, oils and fats, tourism, and hotels and restaurants. On the other hand, fresh vegetables and coffee, cocoa, and infusions experienced the largest price declines.
In June 2023, the Harmonised Index of Consumer Prices (HICP) had a year-on-year rate of 1.6%, which was one point and three tenths lower than the previous month. The monthly rate increased by 0.6%.
PRICES INCREASE THE MOST IN THE CANARY ISLANDS AND MELILLA
All autonomous communities in Spain experienced a decrease in the annual CPI rate compared to May, with the largest decreases observed in Castile-La Mancha, Navarre, and Castile and Leon. The Canary Islands and the autonomous city of Melilla were the only regions with CPI rates above 3%. Madrid, Castile-La Mancha, and Aragon had the most moderate rates, below 2%.
