An expensive Christmas

I guess it was invitable, another strain, but the timing could not have been worse. | Luca Piergiovanni - CB - EFE - E

Majorca Daily Bulletin reporterPalma01/12/2021 11:03

Spanish inflation has reached its highest peak for the past three decades on the back of rising food and gas prices and this is going to hit the high streets as we enter the run up to the festive season.

Consumers are already complaining about the rising price of food and natural resources but add to that the threat of the national strike by transport companies in Spain and a lack of stock due to the Covid slow down in manufacturing in China and prices could go up further before they come. Consumer prices jumped by 5.6 per cent, up from a 5.4 per cent increase in October, according to preliminary figures from national statistics institute.

As in other European Union nations, inflation in Spain has risen since the start of the year after consumer prices declined during most of 2020 due to the economic impact of pandemic lockdowns.

In October, eurozone inflation reached 4.1 per cent, well above the European Central Bank’s target of two percent and equal to a high set in July 2008.

But the bank believes eurozone inflation will soon peak and is set to gradually slow next year as supply bottlenecks and the energy crunch ease - let’s hope they’re right.

But, in the meantime it could mean an expensive Christmas, not to mention a complicated one with new travel restrictions being introduced.