The Government will analyze the February inflation dice “with interest” and will adopt, based on this, “the measures it deems appropriate.” The National Institute of Statistics (INE) published the advanced data on Tuesday, which places the annual rate at 6.1%, two tenths above the previous month, with subjacent inflation (which excludes energy and unprocessed food). at 7.7%, its highest level in forty years.
It has been advanced by the Minister of Agriculture, Fisheries and Food, Luis Planas, during his speech at a breakfast organized by Europa Press. For the moment, and waiting to know the final CPI for last month in a few days, the minister considers that the measures adopted in December to curb inflation, such as the reduction in VAT on basic foods, are “timely.”
The Executive abolished since January 1 this tax on products that already had the reduced rate of 4% (common bread, flour, milk, cheese, eggs and fruits, vegetables, legumes, tubers and cereals that have the condition of natural products) and, in addition, reduced VAT on oils, including olive oil, and pasta from 10% to 5%.
In any case, he is confident that the scenario contemplated by the predictions of international organizations such as the European Commission, the World Bank or the International Monetary Fund will come true because “all” of them point to “a progressive reduction” of inflation in Spain.
On the “eve” of the discount being noticed in the shopping cart
In his opinion, we are on the “eve” of households noticing the drop in prices in the shopping basket, if there is no volatility factor that goes in the opposite direction, after stopping in January “a very strong price rise”. “No one has a crystal ball or a magic wand” to know the exact date.
Also, remember that the trend is “decreasing costs” and that this will be transferred to the prices that reach families. He understands “the concern” that exists in each home due to the average cost of food, which reaches between 20% and 21% of income in the case of lower-income families.
Shortages in the UK after Brexit
On Short supply of Spanish fruit and vegetables in UK supermarkets, the minister considers that it is due to “a purchase programming problem” on the part of the British distribution. Another factor that has contributed to this has been the “reduction” of the harvests in Spain due to the “low temperatures” and, given this, “perhaps” the national suppliers have preferred to send to markets “such as the French or German”, pointed.
However, he believes that it will be “absolutely transitory” and that the normal situation will be “reestablished” on the UK shelves. Luis Planas has added that examples like this show the “vulnerability” of food systems and “provisioning”.
