22 Mar, 2023 @ 18:30
1 min read

Bank of Spain forecasts double-digit food inflation rate to continue for rest of 2023

Bank of Spain forecasts double-digit food inflation to continue for rest of 2023
Image by Steve Buissinne from Pixabay

THE Bank of Spain has offered little respite to food shoppers with its prediction on Wednesday that double-digit food inflation will continue for the rest of the year.

The good news is that the general average inflation rate forecast for 2023 is 3.7%- 1.8% lower than its last prediction made last December.

The Bank says that is down to energy prices being 13.6% down on last year.

The bad news is the cost of food with earlier forecasts raised by 4.4%, with December 2023’s annual rate projected to be 12.2%.

Food inflation reached a record level of 16.6% last month in spite of tax cuts on basic foodstuffs.

The Bank of Spain’s director of Economics and Statistics, Angel Gavilan, did however state that the tax reduction had kept prices down across 90% of ‘designated’ products.

Pressure on food prices will continue but at lower rates, with 4.6% rises projected for next year, and 3.3% in 2025.

The general inflation rate is predicted to be 3.6% in 2024, falling to 1.8% the following year.

The Bank of Spain is forecasting economic growth(GDP) to be 1.6% this year- 0.3% more than in their last forecast in December.

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Alex Trelinski

Alex worked for 30 years for the BBC as a presenter, producer and manager. He covered a variety of areas specialising in sport, news and politics. After moving to the Costa Blanca over a decade ago, he edited a newspaper for 5 years and worked on local radio.

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