Inflation ended 2022 with the lowest rate of the entire year. 5.7% in December, which represents a reduction of more than one point in its annual rate and also more than five points below the ceiling for the year, which was recorded in July. Since then, the decline has been steady, and is expected to decline further, but given current high levels, prices will remain at elevated rates for some time. This figure is one tenth less than the advanced data from the INE.
However, the data also has its cross, and it comes once again from the food side. It represents a 15.7% rise in food and non-alcoholic beverages compared to December 2021, which is a record since this record was established in 1994. This exceeds the 15.3% registered in November.
All foods rise, but the most prominent cases are sugar, an increase of more than 50% compared to December 2021, butter (42%), milk and flour (37%), olive oil (35%) , and eggs (30%)
In addition, underlying inflation, which does not take into account energy or fresh food, is not letting up either, and rises to 7% due to the rise in clothing and footwear prices, standing above general inflation. It is one tenth more than expected by the data advanced by the INE.
Core inflation is one of the worrying elements of today’s data from the INE, as is the rise in food prices. It has been verified that the prices of electricity and fuel are falling and that, on the other hand, the products in the shopping basket continue to skyrocket. It is precisely the verification of this increase, which has led the Government to abolish VAT on bread, flour, cheese and fruit, and other basic necessities, since January 1, while that of oils is reduced to 5% and the pasta.
The previous anti-inflation shock measures, as well as the proper functioning of the Iberian exception mechanism, have achieved some results that have allowed prices to moderate in Spain rather than in other European countries. At the moment, it is the country with the lowest inflation in the European Union.