Inflation in the Canary Islands rises to match national average

Inflation has led prices in the Canary Islands to rise by 1.5% so far this year, a figure that the CEOE and the Chamber of Commerce attribute to "moderation" with a tendency towards "stability."

The consumer price index (CPI), an indicator for inflation, in the Canary Islands rose by 0.6% in April compared to the previous month, reaching a year-on-year increase of 3.3%, aligning with the national average. According to data released this week by the National Statistics Institute (INE), prices in the region have increased by 1.5% so far this year. Clothing and footwear experienced the most significant rise, with a 13.2% increase in the last month.

Provincial Breakdown

By province, the CPI in Las Palmas rose by 0.8% in the past month and by 1.7% so far this year. In Santa Cruz de Tenerife, the increases were 0.4% for the month and 1.4% for the year to date.

National Context on Inflation

Inflation in the Canary Islands rises to match national average

In Spain as a whole, the INE confirmed the inflation data released a fortnight ago. The rise in inflation is attributed to the increase in gas prices, compared to a decrease in April of the previous year, and to a smaller drop in electricity costs compared to last year. The core inflation rate (excluding energy and unprocessed food) stood at 2.9% year-on-year in April, down four-tenths from the previous month and below the headline rate for the first time since November 2022.

Local Economic Insights

Pedro Alfonso, president of the CEOE of Tenerife, emphasized that although the CPI’s rise is moderating, it is still insufficient for the European Central Bank to lower interest rates. He stressed the need to continue working on price containment, beyond public aid to specific sectors like energy.

Santiago Sesé, president of the Chamber of Commerce, Industry, Services and Navigation of Santa Cruz de Tenerife, highlighted the notable impact of the 1.8% rise in fuel taxes on the economy and prices, given the island’s dependency on transport. Despite the initial negative perception, underlying inflation in the Canary Islands tends to be stable at 2.8%, which is 0.5 points below the general Canarian index and 0.1% below the national core rate. This stability suggests that price stability could be achieved in the coming months, benefiting consumers.

Sector-Specific Increases

Inflation in the Canary Islands rises to match national average

Significant price increases were noted in several categories:

  • Olive oil: +68.1%
  • Fruit and vegetable juices: +17.3%
  • Fruit: +17.1%
  • Maritime passenger transport: +16.8%

National Trends

On a national scale, inflation has risen for two consecutive months, following a four-tenths increase in March. It has returned to rates above 3% after falling below this figure in February, having remained above this percentage for five consecutive months prior. The harmonised consumer price index now stands at a year-on-year rate of 3.4%, one-tenth higher than in March, with a monthly change of 0.6%.

These trends underline the dynamic nature of inflation across the Canary Islands and Spain, highlighting both regional challenges and broader economic conditions.

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