Santa Cruz de Tenerife/Madrid 14 Mar. (Europa Press) –
Prices in the Canary Islands rose by 0.5% in February compared to the previous month, resulting in a cumulative increase of 0.4% for the year thus far. The islands continue to have the lowest inflation rate in the country, recorded at 2.2%, according to final data released this Friday by the National Institute of Statistics (INE).
The most significant increases were seen in alcoholic beverages and tobacco, which went up by 0.7%. Conversely, the only decrease was observed in clothing and footwear, experiencing a reduction of 1.5%.
Nationwide, the consumer price index (CPI) advanced by 0.4% in February from the prior month and elevated its annual rate to 3%, marking its highest point since last June when it reached 3.4%.
The annual IPC increase in the second month of the year means inflation has now witnessed five consecutive upticks.
The agency noted that the rise in the CPI to 3% is attributed to increased electricity prices, particularly in contrast to the price drop that occurred in February 2024.
It is essential to remember that from January 1 of this year, the VAT on electricity returned to 21%, having previously been set at a 10% rate until December 31, 2024.
According to the INE, the annual inflation rate, accounting for constant taxes—excluding recent tax fluctuations—was recorded at 2.3% in February, reflecting an increase of one-tenth from the prior month and seven-tenths below the overall rate.
In response to the surge in electricity prices, fuels and lubricants for personal vehicles contributed to a decrease in inflation for February, with their prices rising less than in the same month of 2024.
Specifically, the housing category saw its annual rate rise to 9.8% due to electricity price hikes, while the transport category reduced its annual rate by one point to 0.3%, influenced by the prices of fuels and lubricants for personal vehicles.
Meanwhile, the non-alcoholic food and beverage group increased its year-on-year rate by four-tenths, reaching 2.2%.
Underlying Inflation at Its Lowest in Three Years Despite Exceeding Expectations
The Ministry of Economy, Commerce and Company highlighted in a release that the rise in inflation during February is “primarily” due to increased electricity costs, while also noting the drop in underlying inflation (excluding unplanned food or energy products) to its “lowest rate in over three years.”
Specifically, underlying inflation fell by two-tenths in February to 2.2%, which is eight-tenths below the general index and the lowest rate since December 2021, which was also at 2.1%.
The underlying inflation figure is one-tenth higher than the preliminary statistic from the end of last month (2.1%), yet both the overall CPI (3%) and the monthly change (0.4%) align with original estimates.
“In a climate of international uncertainty, Spain continues to demonstrate the highest growth amongst the principal economies of the eurozone, which is consistent with price moderation and an increase in citizens’ purchasing power,” the Ministry of Economy remarked.
Additionally, the harmonised CPI (IPCA) remained steady at 2.9% in annual terms while increasing by 0.4% month-on-month.
Electricity Prices Surge by 28% While Olive Oil Prices Drop by 32%
Over the past year (February 2025 compared to February 2024), the most significant hikes were in electricity (+28.1%), chocolate (+24.1%), jewellery (+22.5%), maritime passenger transport (+16.9%), and other oils (+16.7%).
Conversely, the steepest reductions over the past year were found in olive oil (-32.3%), passenger rail transport (-16.1%), sugar (-15.2%), subway transport (-9.4%), and mobile phone devices (-9.2%).
The annual decline in olive oil prices by 32.3% represents the most notable drop in the historical series. In monthly terms (February compared to January), this ‘liquid gold’ saw a reduction of 8.7%, which is also the largest month-on-month decrease recorded. Nevertheless, since January 2021, this product has still accumulated a price increase of 97.1%.
Monthly Increase of 0.4% in Hotels, Restaurants, and Fuel Prices
In monthly terms (February versus January), the CPI experienced an increase of 0.4%, two-tenths more than its initial rise at the start of the year.
With the February uptick, inflation has now recorded five consecutive months of monthly increases.
The advance in monthly CPI is chiefly due to the 0.7% price increase in the group of hotels, cafés, and restaurants, linked to rises in dining and accommodation services, as well as a 0.6% increase in the transport group due to the escalated prices of fuels and lubricants for personal vehicles, along with maintenance and repair services.
In contrast, prices for clothing and footwear during the February winter sales decreased by 1.5%.
Specifically, the greatest increases in February were noted in hotels and hostels (+7.3%) and national flights (+6.9%), while the most significant drop was in olive oil (-8.7%).
Balearic Islands and the Basque Country Have the Highest Inflation Rates
By the end of February, all autonomous communities reported positive CPI rates, all exceeding the 2% target set by the European Central Bank (ECB), with eight communities exhibiting rates of 3% or higher.
The regions with the highest inflation rates at the close of the second month of the year were the Balearic Islands (3.6%), the Basque Country (3.3%), Valencian Community and Asturias (3.2% in both cases), followed by Catalonia and Madrid (3.1% each).
Conversely, the most moderate annual CPI rates were witnessed in the Canary Islands (2.2%), Murcia (2.3%), and Castilla-La Mancha, Extremadura, Galicia, and La Rioja, each recording a rate of 2.7%.
Meanwhile, the autonomous cities of Ceuta and Melilla had CPI rates of 3.3% and 3.1%, respectively, at the end of February.
