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FOOD INFLATION in Spain was 12.9% in April compared to prices a year earlier, according to data published on Friday by the National Institute of Statistics(INE).
It’s the lowest level since June 2022 and a 3.6% fall on the March inflation rate.
The INE confirmed April’s inflation rate as standing on 4.1%- up 0.8% on March.
Though the fall in food inflation is good news, it is uncertain what effect the drought will have on crops and how that will feed into the economy.
Some of the biggest shopping basket rises in 12 months were sugar (up 49.6% over a year), butter (31.2%), whole milk (27.7%), skimmed milk (27.5%) and sauces and condiments (26.3%).
The Bank of Spain says that during 2023, the average increase in food prices will be 12.2%.
Raymond Torres head of economic think-tank Funcas told the El Pais newspaper: “Prices of agricultural raw materials such as fertilisers have fallen since October and that should contribute to curbing food prices.”
“The main risk is the impact of drought and everything depends on the weather not just in Spain but also in countries that may not be able to export to supply local demand and therefore contain prices,” he added.
READ MORE:
- High inflation is stunting growth for Spain’s food sector
- Bank of Spain forecasts double-digit food inflation rate to continue for rest of 2023
