Food inflation stands at 4.4% in May, which can lead the Government to increase its VAT discount | EUROtoday

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Los meals have been in May nonetheless a 4.4% costlier than in the identical month of the earlier 12 months, a stage of inflation which is three tenths under final month however nonetheless effectively above the General CPI of three.6%in keeping with the ultimate knowledge printed this Thursday by the INE.

The acceleration in costs within the grocery store has led the President of the Government, Pedro Sánchez, to advance your intention to prolong the VAT discount on some meals when expires June thirtieth. Specifically, those who now have this decreased tax are widespread bread, bread-making flours, produced milk, cheeses, eggs, fruits, greens, legumes, tubers, cereals and oils; whose VAT is 0% as a substitute of the 4% they have been at earlier than the discount; whereas to pastas and oils A VAT decrease than the standard 10% can be utilized to them, of 5%.

In May, the recent meals They have been 4.6% costlier than a 12 months in the past and their value was 0.2% increased than final month; whereas the processed meals They offered an interannual inflation of 4.2% and didn’t change their value in comparison with April.

Although these merchandise have been going to expertise a rise in VAT from July 1, The president acknowledged on Wednesday in a tv interview that he’ll attempt to acquire the mandatory parliamentary assist to increase it; one thing that was later confirmed by the Minister of Economy, Carlos Bodywho famous that “just as the European Central Bank is taking measures based on the data, the Government does the same. Food continues to have inflation above the general CPI, “with which the preliminary situation that gave rise to this measure continues to be maintained” and, therefore, the decrease should be extended.

This extension will have a cost to state coffers, but it will not be very harmful given the increase in tax revenues in recent years spurred by inflation. Families will be spared a price increase in supermarkets, although there are doubts that merchants did not take advantage of the discount to slightly inflate starting prices. The measure, furthermore, to benefit so much to low incomes -those who need it most- like the high ones.

The underlying and the general rise

The inflacin general of the Spanish economy rose three tenths in May, from 3.3% to 3.6%while the underlyingwhich does not take into account prices of energy products or fresh foods (and is used to measure trend inflation in the economy), increased by a decade last month, up to 3%, something that the Ministry of Economy linked to the “improve in costs of companies associated to the turismo (vacationer packages, air passenger transportation, lodging companies, and so on.)”.

This year the forecasts for tourism sector They are so powerful – it is expected that Spain will even reach 100 million foreign visitors for the first time – that companies are not afraid to raise prices and that this will penalize demand.

The olive oil continues to be the most expensive product in the shopping cart (and 62.8% compared to last year) and is the main responsible for food inflation, since the rest of the foods that lead the increases follow at a distance, such as fruit juices (15.9%), fresh and refrigerated fruits (12. .1%) and chocolate (9.2%).

Among the goods and services whose price registered the greatest increases is also passenger transport by sea (22.2% more expensive than last year), national tourist packages (17.7%), license fees and subscriptions to television and radio networks (15.4%) and electricity (14.3%).

In regional comparison, the CPI registered positive annual rates in all autonomous communities in May: Galicia presented the highest (4.0%) and Canary Islands the lowest (3.4%).

For its part, the harmonized CPI that is used to compare the evolution of prices with the rest of the countries of the European Union was placed in the 3.8% in May, two tenths above its April level.



https://www.elmundo.es/economia/2024/06/13/666a9279fdddff7c4e8b4583.html