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STAFF REPORTER

RETAIL sales in the Balearics in February this year fell by 5 percent in comparison with figures for the same month in 2010, the National Institute of Statistics (INE) confirmed yesterday. By way of contrast, the number of jobs in the sector increased by 0.1 percent during the same period.

The INE data revealed that to date in 2011, sales in the Balearic Islands have fallen by 5.7 percent although employment has increased by 0.2 percent.
Across the country, the Institute reported that there had been a downturn in sales of 4.8 percent during February, linked to job losses of 0.5 percent. In January this year, the year-on-year decline in employment in the retail sector had been 0.7 percent.

Retail sales in February this year were down in all regions of the country in comparison with the same month in 2010, with the exception of the Canary Islands. Sales of food products declined by 3.2 percent and non-comestibles by 5.8 percent. Notably low were sales of household goods which had slumped by 8.1 percent in comparison with February 2010. Employment during the month had declined in nine regions.

The large chain stores were apparently the only businesses which reported no downturn in sales in comparison with February 2010 and the number of jobs in them rose by 0.8 percent on a year-on-year basis during February. At small chain stores however, the employment figure fell by 2.1 percent for the same period and at hypermarkets it was down on a year-on-year basis by 1.4 percent.

Setting aside the factor of soaring petrol prices, filling stations registered a 1.7 percent downturn in sales this February in comparison with the same month last year. Year-on-year figures for jobs at filling stations showed that there had been a 0.5 percent slump in employment.

Meanwhile, the price of food and non-alcoholic drinks registered over the last month has kept inflation high, reported the INE. The consumer price index (IPC), said the Institute, has gone up this month to 3.6 percent, more than half the increase of 1.5 percent registered a year ago. The year-on-year IPC confirmed the INE, is therefore for the second month running, at its highest since October 2008, when it was also measuring 3.6 percent.

Spain is not the only country in the European Union where inflation is running above recommended levels. The IPC in Germany rose 0.5 percent in February to reach a year-on-year increase of 2.1 percent.

As a result of European Union ruling, economies of member states using the euro are applying the same scale of inflation or deflation to what are considered as essential seasonal products including fish, fruit and fresh vegetables, shoes and clothing. This new form of pricing assessment will mean considerable cost fluctations at a national level and a breaking away from historic pricing trends.

Confidendence in the EU economy has meanwhile deteriorated more than expected, a spokesman in Brussels said yesterday.