Balearic cost of living goes through the roof.

Balearic cost of living goes through the roof. | Majorca Daily Bulletin reporter

Humphrey CarterPalma13/07/2022 15:49
TW
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The annual rate of inflation shot up in June in the Balearics to 9.7 % and to 10.2 % in Spain, reaching its highest level in since April 1985, according to the National Statistics Institute (INE). In May, inflation in the Balearics was 8.2 %.

The year-on-year increase in prices throughout the country, one and a half points higher than in May (8.7%), was mainly driven by higher fuel and fresh food prices.

If the most volatile items (fresh food and energy) are removed from the shopping basket, underlying inflation increased by six tenths of a percentage point compared with May and stood at 5.5 %, the highest rate since August 1993.

Excluding the latest tax changes, the CPI would have recorded a year-on-year increase of 11.1 % in June, almost one point higher than the general CPI.

The price of electricity rose by 33.4 % in June and, without taking into account the latest tax changes on electricity, the increase would be 52.7 %, almost twenty points higher.

Transport was the group that pushed inflation up the most in June, with a price increase of 19.2%, more than four points higher than in May, due to higher fuel and lubricants prices.

This was closely followed by food and non-alcoholic beverages, with a rise of 12.9 %, almost two points higher than in the previous month and the highest since records began in 1994.

Fruit, vegetables, meat, bread, cereals, milk, cheese and eggs pulled up inflation, while oils and fats fell in price.

Hotels, cafés and restaurants increased their prices by 7.2 %, nine tenths more and also the highest rate in history (1994).