Electricity, food, and clothing drive up the cost of living in October

BarcelonaElectricity, food, and clothing were the products that contributed most to the increased cost of living for Catalan families this past October, according to data from the Consumer Price Index (CPI, the indicator that measures inflation) published this Friday by the National Statistics Institute (INE). Both in Catalonia and throughout Spain, prices rose again after three months of declines or very low growth. Thus, the prices of consumer goods and services increased by 0.4% last month compared to September, following the decrease recorded that month compared to August. Compared to October 2014, the increase was 2.6%. Across Spain, the INE confirmed the monthly and annual increases of 0.7% and 3.1%, respectively, which had already been reported. had advanced two weeks ago

In the case of Spain, last month's 3.1% inflation rate is the highest annual rate since June 2014 and exceeds the European Central Bank's (ECB) medium- and long-term target of 2% by more than one percentage point. In Catalonia, however, the 2.6% figure is lower than those recorded last winter, when inflation peaked at 3.1% in February. Only the Canary Islands and Murcia registered lower inflation rates than Catalonia, while the Balearic Islands and Madrid led the price increases with a year-on-year rise of 3.6% in both cases. According to INE (National Statistics Institute) calculations, clothing and footwear saw the largest price increase in the basket of everyday consumer goods and services used to calculate the CPI (Consumer Price Index): in just one month, clothing prices rose by 6.6% in Catalonia and by an average of 8.2% across the country. Similarly, the price of electricity and gas increased by 2.4% compared to September in Catalonia, and food prices rose by 1%, increases significantly higher than in September, when domestic energy prices fell slightly by 0.1% and food costs remained flat compared to the previous month. On the other hand, the 1.2% monthly drop in tourism and hospitality services in Catalonia stands out, as is typical in October due to the end of the peak tourist season, which can extend into September. In fact, the INE highlights that, overall, leisure and entertainment products were the biggest contributors to the downward pressure on the CPI last month. Eggs, coffee, and chocolate led the price increases.

Rising food prices are one of the biggest financial burdens on families, particularly those with lower incomes. The most striking example in recent months is eggs, which have always been one of the most affordable and popular foods, but whose price has skyrocketed by 15.8% between October of last year and October of this year. Only coffee and cocoa saw a greater price increase than eggs, rising by 16.6% over the same twelve months.

The rising price of eggs has recently made headlines, coinciding with the detection of several outbreaks of avian flu, especially in Castile and León, which have forced the Ministry of Agriculture to issue a confinement order for breeding birds from all poultry farms in the StateAlthough the epidemic has not affected any Catalan farms, the rising price of eggs has also been a point of criticism from Democrats in the United States regarding the economic policies of President Donald Trump, who had campaigned on them. promising a reduction in commodity inflation, especially food.

Likewise, beef—and to a lesser extent, lamb—has maintained the upward trend it already had last year and is expected to reach record prices again at Christmas, such as It already happened last year.

At the other extreme, the sharp drop in the price of sugar stands out, falling 18.5% in one year, as does the price of oils, which plummeted 32.4%. This significant decline isn't actually a decrease in price, but rather a correction following the large price increases of 2022 and 2023, when drought in Catalonia and Andalusia drove up the cost of olive oil. With the end of the drought, prices have been gradually normalizing, although they are still higher than before the price hikes.