In 2024, Spain managed to control inflation after years of economic turbulence, with the consumer price index (CPI) showing a 2.4% increase until November, a significant decrease from the 3.1% recorded the previous year. The food group saw a modest 1.7% increase in prices, mainly due to government measures such as temporarily reducing VAT to 0% for basic products like bread, eggs, vegetables, and fruit. The prices of sugar, milk, and yogurt dropped, while products like juices, potatoes, and chocolate saw significant price increases. The overall picture for the food group was positive, with some exceptions.
Alcohol and tobacco prices rose by 4.4% in 2024, with increases in cigarette prices due to anti-tobacco measures implemented by the Ministry of Health. The prices of wine and beer also increased, driven by factors such as higher prices in the hospitality sector and lower production in previous years. On the other hand, clothing and footwear prices remained relatively stable until November, with a slight increase in November itself. Changes in consumer habits have been observed, with people shopping less frequently but buying more products, while promotional periods have lost relevance.
Household expenses related to housing, water, electricity, gas, and other fuels increased by almost 7% from January to November in 2024. The main driver of this increase was the rising cost of electricity, which was 16.9% higher than the previous year. Despite these increases, experts consider the current inflation levels as manageable and within expected ranges. Furniture and household items prices remained stable, with some products like appliances becoming slightly cheaper. Health-related expenses saw a 2% increase, with dental services leading the growth.
Transportation costs, sensitive to energy price fluctuations, showed a different trend in 2024 compared to previous years, with lower prices for diesel and gasoline due to falling oil prices. Prices for public transportation by train remained stable, while sea and air passenger transport experienced price increases. Communication products like mobile phones and laptops became more affordable, as did entertainment and cultural services, which saw a slight decline in prices. Education costs increased slightly across all levels, driven by operational expenses and demand variations.
The tourism sector witnessed significant price increases, particularly for hotel accommodation, as Spain’s popularity as a tourist destination drove prices up. Despite overall moderate increases in hotels and restaurants, detailed analysis revealed double-digit increases in certain components. The impact of rising wages in the services sector played a key role in maintaining inflation resistance, especially in activities with high demand like tourism. Other miscellaneous goods and services saw varying price changes, with jewelry and accessories showing the highest increase in prices.
