Los foods They are, of all the goods and services we consume, what has increased the most since before the pandemic. Between 2019 and 2022 they became more expensive by 22.8%, an increase to which we must add the 11% increase in price that the Bank of Spain foresees for this year and additional increases of 4% in 2024 and 2.4% in 2025.
This is how he collects it Quarterly Macroeconomic Projections Report 2023-2025 presented yesterday by the institution, in which it points out that although “there is a moderation quite widespread by products since the peak reached in February, “Food inflation continues at high rates” and warns that “the slowdown in food inflation could be slowed by the impact of the drought and anomalous temperatures on agricultural production”.
Thus, although the brake on increases is welcome, it is worrying that food is going to continue up the next two years -a 4% more increase in 2024 and an additional 2.4% in 2025-, increases that could also be higher depending on the climate, especially in products especially affected by drought such as “cereals, rice, nutsfresh vegetables, fresh fruits, olive oil and grape wine,” says the institution that runs Pablo Hernández de Cos.
This is very bad news for low income householdssince food represents a higher weight on their consumption basket and, in addition, it will continue to rise along with another product that is also considered a basic necessity and that also takes up a greater proportion of their spending: energy.
After dropping in price by 13.9% year-on-year this year, Energy products will become 19.5% more expensive in 2024, according to the Bank of Spain, which has updated that forecast upwards from the 12.3% it had projected in June. The rise in the price of Petroleum that occurred this summer and the futures market prices justify this increase and are the main reason behind the upward revision of the entity’s inflation estimate.