How Spain’s cost of living increase is worse than in France and Germany
Eurostat data reveals that Spain is the major EU economy where people are having to deal with the biggest rise in prices, from electricity and fuel to food and travel costs.
Although the price of goods and services has risen exponentially across the European Union over the past year, the EU’s Harmonised Index of Consumer Prices (HICP) showcases how Spain is where the cost difference is greatest, especially when looking at the EU’s largest economies: Germany, France, Italy and Spain.
The HICP represents the change over time in the prices of consumer goods and services purchased by euro-area households.
It’s “harmonised” because all the countries in the EU follow the same methodology, ensuring that the data for one country can be compared with the data for another.
Spain is moving past most of its European neighbours in terms of this harmonised inflation rate. It’s 1.8 per cent higher than that of the eurozone and 0.9 per cent above the EU average.
Spain’s HICP stood at 10.7 per cent in July compared to 6.8 per cent in France, 8.4 per cent in Italy or 8.5 per cent in Germany.
Based on data from Spain’s National Statistics Institute, the biggest price increases in July 2022 compared to figures from July 2021 were electricity (49 per cent more expensive), hotels (33.8 per cent more costly), fuel and gas (23.9 per cent higher), international flights (+21.6 per cent) and grocery shopping (+13.5 per cent).
The Spanish government has implemented measures aimed at stopping the spiralling costs of electricity, fuel and rent, but the evidence suggests that they have been less effective than similar methods used in the EU’s other major economies, despite the fact that Spain is less dependent on Russian
INE reported in mid-July that the country’s 10.2 inflation rate was the highest level Spain has experienced since 1985
Source The Local Spain
