Consumer prices in the Canary Islands registered a 0% monthly variation in July, keeping the year-on-year rate at 3.4%. Nationally, the General Consumer Price Index (CPI) increased by 0.3% during the month, raising inflation to 3.6%.
Santiago Sesé, president of the Official Chamber of Commerce, Industry, Services, and Navigation of Santa Cruz de Tenerife, positively assessed the monthly price moderation in the Islands, calling it "favorable" and "more contained than the national average." However, he warned that inflation has remained above 3% since March, after experiencing rates closer to 2% in the early months of the year.
Sesé emphasized the need to "continue paying attention to families' cost of living and the costs borne by businesses," particularly in "housing, transport, and fuel," sectors that exert greater inflationary pressure.
“"This evolution forces us to continue paying attention to families' cost of living and the costs borne by businesses, especially in those areas that are having a greater impact, such as housing, transport, or fuel."
Core inflation, which excludes the most volatile components of the consumer basket, showed a more contained trend in the Canary Islands, with a one-tenth increase in July and a year-on-year rate of 2.6%, four tenths below the national average. This suggests less underlying price pressure in the Canaries, even though the general index remains above 3%.
The seasonal price increase in July was concentrated in 'Recreational activities, sports, and culture' (2.6%), 'Housing, water, electricity, gas, and other fuels' (1.2%), and 'Restaurants and accommodation services' (0.7%), linked to the summer period. Conversely, the 'clothing and footwear' group decreased by 13.7% due to summer sales.
The Chamber of Commerce highlighted the dynamic of the housing, water, electricity, gas, and other fuels group, due to its direct impact on household budgets and its influence on attracting and retaining workers in the Canary Islands.
Fuels and combustibles, although they decreased by 1.8% in July, continue to show a high year-on-year rate of 19.9%, exceeding the national average. "It is positive that fuels have contributed to moderating prices in July, but their accumulated evolution continues to represent a significant extra cost for families and Canarian businesses," Sesé stated.
In year-on-year terms, 'Transport' remains the group with the highest price increase, followed by 'Restaurants and accommodation services'. 'Clothing and footwear' was the only group with a year-on-year decrease, driven by sales.
The Chamber of Commerce concludes that the July data shows monthly moderation but not the end of inflationary pressures. The priority, according to Santiago Sesé, is to "consolidate this moderation and, at the same time, act on the factors that are increasing the cost of living and reducing companies' ability to attract workers and maintain their competitiveness."
