Catalonia closes June with a rise in prices, but below Spanish levels.

BarcelonaRising oil prices in recent months, which led to higher gasoline and diesel prices, pushed up the cost of living for Catalan families in June, along with prices for leisure and cultural services and hospitality and catering, which also rose due to the proximity of summer and the season. However, the annual inflation rate in Catalonia was slightly lower than the Spanish average and stood at just 2%, the target level set by the European Central Bank (ECB).

Thus, prices of consumer goods and services increased by 2% last month in Catalonia compared to June 2024, according to data from the Consumer Price Index (CPI, the indicator that measures the cost of living for families) published this Tuesday by the National Institute of Statistics (INE). This represents an increase of two-tenths of a percentage point compared to May, when the annual inflation rate was 1.8%.

Precisely if compared to the previous month, in May, the rise in the CPI in June was a remarkable 0.7%, while in the previous month the monthly increase had been minimal, at 0.1%.

In Spain as a whole, prices grew by 2.3% compared to the same month in 2024, one tenth more than the figure initially advanced by the INE three weeks ago and three-tenths above the May rate. Spain thus exceeds, albeit by only three-tenths, the ECB's long-term limit. In monthly terms, the CPI grew in Spain by 0.7% compared to May, the same figure as in Catalonia.

Despite the increase, the Spanish government has boasted about the situation: "Spain continues to enjoy a situation of stability and moderate prices that, together with wage increases, allows households to continue gaining purchasing power," the Ministry of Economy said in a statement.

Rising energy prices

Energy was one of the factors that most increased the cost of living in June, largely due to the rise in oil prices as a result of conflicts in the Middle East, especially the war between Iran and Israel and the United States. The possibility that Tehran would close the Strait of Hormuz, through which a large part of the oil tankers exporting crude from the Persian Gulf countries pass, further increased geopolitical uncertainty in the region and, by extension, the price of oil.

This explains why fuel prices, such as gasoline and diesel, have maintained the same upward trend as in previous months. The cost of transportation rose 0.9% compared to May, although it is still at levels lower than those of a year ago. The rise in oil prices also affected electricity and gas bills, with a 2.2% increase in just one month.

Also notable is the 7.5% monthly increase in public transport prices due to the end of the price discounts that had been in place since the pandemic.

The start of the tourist season and the summer period also increased the cost of tourism and leisure services. Last month, package tours rose 10.6% in just one month, while accommodation services (hotels, holiday apartments, campsites) rose 4.9%, something common at this time of year after a May that usually sees a drop in demand because it falls between Easter and the start of summer. Leisure and culture also increased in price, in this case by 2.5% compared to the previous month.

At the other extreme, clothing and footwear became 0.7% cheaper monthly.

As for food, olive oil continued to record sharp price declines. The CPI item for cooking oils fell 3.4% between May and June alone and was 35.4% below year-ago levels, confirming the normalization of prices after the drought in the last two years reduced olive production and skyrocketed the cost of oil. Fresh vegetable prices also fell.

On the other hand, beef continued the increases it has been accumulating for more than a year and is now 11% above June 2024 prices. Likewise, the cost of fruit and seafood also increased.