Inflation remains low in the Canary Islands despite price hikes in key sectors, according to the latest data from the National Statistics Institute (INE). The Consumer Price Index (CPI) in the Canary Islands rose by 0.3% in June compared to May, which is slightly lower than the national average increase of 0.4%. This places the annual inflation rate in the Canary Islands at 3.1%, the lowest in Spain.
Notably, price increases were observed across several categories last month in the archipelago. Leisure and culture experienced the most significant rise with a 1.3% increase, followed by housing (including electricity) which saw prices increase by 1.0%. Additionally, hotels, catering, tourism, and other services each recorded a 0.6% price increase. Meanwhile, there were modest rises in alcoholic beverages and tobacco by 0.5%, and food and education both saw a minimal increase of 0.1%.
However, there were some sectors where prices fell in June compared to May. Clothing and footwear saw the most significant decrease, dropping by 1.4%, while there were marginal declines in medicine and transport (including fuel), both decreasing by 0.1%.
Looking at the year-over-year data, the most inflationary sectors in the Canarian economy were hotels, catering, and tourism, which saw a 5.5% increase in prices. Housing costs followed closely with a 5.1% increase, and food prices rose by 4.4%. Other notable increases were seen in alcoholic beverages and tobacco at 3.5% and education at 3.2%, both exceeding the general inflation rate in the islands.
Despite the overall increase, some areas saw price reductions over the past twelve months. Clothing and footwear prices dropped by 2.2%, and household goods decreased by 0.5%, offering some relief amidst the broader inflationary pressures.
In summary, while the Canary Islands continue to experience some price increases, particularly in tourism-related sectors, the overall inflation rate remains comparatively low, underscoring a diverse and changing economic landscape.