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Date Published: 16/01/2025

Food prices in Spain dropped to a three-year low at the end of 2024

Groceries and Christmas goodies were a little more expensive in Spain during December

Food prices wrapped up 2024 at their lowest inflation level in three years, though December saw a slight uptick just before the new VAT hikes took effect.

According to the latest Consumer Price Index (CPI) data from Spain's National Institute of Statistics (INE), food prices were actually 1.8% higher in December compared to the same month in 2023. This modest rise contrasted with a general inflation rate of 2.8%, driven by increasing fuel costs and pricier tourist packages.

Before Christmas, many supermarkets hiked up the cost of holiday grocery staples, so food inflation edged up ever so slightly from 1.7% to 1.8%.

Still, the overall picture for 2024 is one of cooling prices, a sharp turnaround from the start of the year when food inflation was a hefty 7.4%. Over 12 months, food price increases slowed by more than five points, landing below 2% since September.

These figures mirror levels not seen since 2021, before the energy crisis triggered by the Russian invasion of Ukraine sent prices soaring. For the year as a whole, food prices rose by an average of 3.6%, a significant drop from the double-digit increases of more than 11% seen in 2022 and 2023.

However, some products still felt the squeeze. It was an expensive year for anyone with a sweet tooth as chocolate saw the steepest price increase, soaring 23.9% compared to December 2023. Juices, fresh fish, cocoa powder, potatoes and beef also climbed, with prices rising between 7.2% and 10.6%.

On the flip side, sugar and that usual bank-breaker olive oil became more affordable, with prices dropping by 13.9% and 12.3%, respectively, after sharp rises the previous year.

While the grocery bill took a breather, overall inflation ticked up for the third consecutive month in December, largely because of a spike in fuel prices. Diesel and petrol rose by 1.5% and 0.6% in December alone, a stark contrast to falling prices in 2023. Electricity and natural gas also became pricier, with year-end increases of 18.6% and 10.2%.

Tourism also contributed to December's inflation bump, with holiday packages in Spain seeing a 21.2% price hike compared to December 2023. Domestic flight prices increased by 11.3% over the year.

So, what’s in store for this year? Despite the December uptick, analysts expect inflation to remain under control throughout 2025, hovering near 2%. The Bank of Spain predicts consumer prices will rise by 2.1% this year, aligning closely with the European Central Bank’s target.

In other news: High-speed train tickets are now half the price in Spain

Image: Freepik

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