In November, the Consumer Price Index (CPI) in the Canary Islands showed a year-on-year increase of 3.8% compared to the same month in 2022, as reported by the National Statistics Institute (INE). This rise is primarily attributed to a significant hike in food prices, which soared by 11.1% across the islands.
However, on a monthly basis, the archipelago saw a marginal decline in the CPI by 0.2%, thanks to decreases in leisure and culture (down by 1.4%), housing (down by 1.2%), and transport (down by 0.9%).
Nationally, Spain experienced a 0.3% reduction in the CPI in November compared to the previous month, bringing the annual rate down to 3.2%. This decrease is mainly due to lower costs for fuel, package holidays, and food, with the latter’s growth slowing down by half a point to 9%.
This trend is explained by a drop in the prices of bread and cereals, milk, eggs, and cheese, and a lesser rise in meat prices this November compared to the same month in 2022. However, the price of pulses and vegetables increased in November, according to the final CPI data. This also confirms the 3.8% increase in contributory pensions for 2024, based on the average inflation rate up to November.
Inflation in Spain dipped to its lowest since last August at 2.6%, having previously stabilized at 3.5% for two months. Core inflation, which excludes unprocessed food and energy products, fell to 4.5% in November, the lowest since April 2022.
The Ministry of Economy highlighted that the government’s policy measures have helped reduce general inflation throughout the year, enhancing the purchasing power of wages and competitiveness of Spanish companies.
One notable increase was in olive oil prices, which skyrocketed by 66.7% year-on-year. Other significant rises included domestic package holidays, rice, pulses and vegetables, and confectionery products. Olive oil prices rose by 4.7% from October to November, 53.8% in the first eleven months of 2023, and 164.1% since February 2021.
Other foods also saw double-digit increases, such as pork, other food preparations, fresh fruit, and sheep meat. Conversely, the most significant price drops compared to November 2022 were in other oils, butane and propane, natural gas, liquid fuels, and combined passenger transport.
Excluding tax adjustments, the year-on-year CPI would have been 3.5% in November, slightly higher than the general rate of 3.2%.
Month-on-month, the CPI fell by 0.3% in November, marking the largest decline since September 2022 and ending five consecutive months of increases. This was due to drops in transport, housing, leisure, and hotel costs.
Prices for women’s clothing and olive oil rose the most in November compared to the previous month, while hotels and hostels saw the largest decline. Lastly, the Harmonised Index of Consumer Prices (HICP) stood at a year-on-year rate of 3.3% in November, with a monthly change of -0.5%.
