Inflation in the Community of Madrid shows no signs of abating. Despite a slight moderation in food, clothing, and footwear prices, the general Consumer Price Index (CPI) increased by two tenths in July, reaching 3.9%. This rise breaks a three-month period of stagnation at 3.8%. Meanwhile, core inflation, which excludes volatile items, decreased by three tenths to 3.2%, indicating a shift in trend.
The primary drivers of the general CPI increase are expenses related to housing and transport. Housing saw a monthly increase of 1.2% and an annual rise of 7.1%, while transport costs went up by 2.5% monthly and 5.9% annually. The end of government aid for energy products has led to a sharp increase in the prices of electricity and gas (3.3% monthly and 8.0% annually), as well as in private transport (5.3% monthly and 10.7% annually). Housing maintenance costs have also been affected by the new waste disposal tax, which has increased annual costs by 11.6%.
The grocery basket offers some relief, with food and non-alcoholic beverages depreciating by 6 tenths in July. However, staple products such as eggs (+16.8%), fish (+10.6%), and mutton (+10.3%) continue to show significantly higher prices compared to last year. Conversely, fresh fruits (-4.6% monthly) and legumes and vegetables (-2.3%) are cheaper.
Consequently, Madrid families are continuing to lose purchasing power month after month. The average salary increase agreed upon by collective bargaining, which affects over 800,000 workers in the region and is the second lowest in the country, stood at 2.7% in July, falling five tenths below core inflation. María Concepción Iniesta, general secretary of USO-Madrid, stated that "fiscal aid can offer temporary relief to Madrid residents' pockets, but what is truly needed is a bold fiscal policy capable of automatically responding to market fluctuations." She added that "salaries are growing less than prices, and working people struggle to make ends meet," which is why her union insists that "salary increases should be legally linked to the rising cost of living."
