Households in the Canary Islands are dedicating a significant portion of their income, close to 70%, to cover what are considered basic expenses. The average family budget on the islands stood at 32,921 euros in 2025, but the rising cost of essential living expenses consumes not only the income increase but also the margin previously available for less critical spending.
According to the Family Budgets Survey by the National Statistics Institute (INE), food (5,131 euros), rent (8,263 euros), and household bills and utilities (1,782 euros) already account for 47.5% of income. When adding medication, health services, clothing, footwear, and telecommunications, the percentage rises to 56.5%. Including education, vehicle, and insurance expenses brings the total to 68.5% of the annual budget.
The increase in the cost of essential needs not only eats up the extra 0.7% they had but also takes a significant bite out of the funds they previously had left for more superficial expenses.
This scenario leads Canary Islanders to reduce their spending on leisure, holidays, and savings. An increase of almost 8% in the grocery bill (9.7% if non-alcoholic beverages are included) and a 4.4% rise in rent payments are observed. Bills for electricity, water, waste disposal, and gasoline also consume a larger portion of the budget, as does spending on medication (a 20% annual increase) and primary and infant education.
Conversely, Canarian households are cutting back on expenses considered non-essential. Spending on restaurants has decreased by 4.3%, despite a 6.1% rise in the Consumer Price Index (CPI) for this sector. Spending on alcoholic beverages, tourist packages, tobacco, and purchases of durable goods like cars or appliances is also being reduced.
The percentage of the family budget allocated to essential expenses has been progressively increasing. Two years ago, food, housing, and associated costs represented 45.4% of family income; in the last year, this figure has risen by two points, requiring an additional annual expenditure of 776 euros. Over the past decade, these expenses have climbed three percentage points, with two of them occurring in the last twelve months.
Despite a modest annual budget growth of 0.7% in the Canary Islands, significantly lower than in other regions like Extremadura (7.6%) or Madrid (6.7%), the CPI has risen by 2.9%. However, over the last decade, the growth in household spending in the Canary Islands (39%) has outpaced price increases (29%). Recent inflationary crises have significantly impacted the finances of island residents.
The gap between the average family budget in the Canary Islands and the national average has narrowed. Currently, island households spend 2,179 euros less than the Spanish average, a difference that ten years ago stood at 4,561 euros.
