• Inflation and the plastic tax dilute Sánchez's VAT drop

The

price of food shot up

15.9%

last month

compared to December 2021, which strained the accounts of

families

who had to face

record prices in the supermarket

at Christmas .

Headline

inflation stood at

5.7%

last month ,

while core

inflation

-which does not take into account the price of energy products and fresh food, as they are the most volatile-

stood at 7%.

The National Institute of Statistics (

INE

) has published this Friday the final figures of the CPI for December.

He had anticipated at the end of the month that inflation would stand at 5.8% -one tenth above the final result- and underlying inflation at 6.9% -one tenth below-.

In a

monthly

comparison , prices in the economy rose

0.2%

in December compared to November;

while the prices of all products without counting fresh food and energy products increased by

0.9%

.

This category includes all

processed foods

(yogurts, legumes, pasta, etc.) that rose in a single month.

The December data also makes it possible to know with certainty that

inflation stood at an average of 8.4% in 2022,

compared to the

2.78% rise in wages

that occurred in Spain, according to the Statistics on Collective Agreements of the Labor Ministry.

The difference between one increase and another shows a loss of purchasing power for workers of about 6 points.

Beyond the pressure on the pocket exerted by inflation in general, which spreads through all the goods and services in the shopping basket, the

increase in food prices

is one of the issues that worries the country the most, since it is something basic that no family - not even low-income ones - can give up.

Hence, the Executive has approved a

drop in VAT

on some basic foods that came into force on January 1.

The measure will coincide with the

end of the bonus of 20 cents

per liter on fuel, which will partly offset the effect it will have on the CPI for January.

For the whole of

2023

, the Bank of Spain expects prices to rise another

4.9% on average.

According to the criteria of The Trust Project

Know more

  • Inflation