The good behavior of electricity and fuel prices, plus the statistical effect when compared to a year ago when prices were soaring, has moderated inflation in March to 3.3%. They are two tenths above the data advanced by the INE on March 30.
It is a drastic reduction in inflation, which went from 6% in February to 3.3% in March, but this does not mean that prices have fallen. The point is that the interannual CPI is calculated by comparing it with that of the same month of the previous year, in this case, March 2022 when the war in Ukraine caused an escalation in energy prices. Thus, the forecast for the coming months is that inflation will be highly volatile during the first half of the year, with significant ups and downs due to this step effect.
On the other hand, core inflation, which does not take into account energy or fresh food, has moderated by one tenth compared to the previous month and stands at 7.5%. It is its first moderation since September, although the truth is that it is only one tenth less than in February, and it already has four consecutive months above 7%.
Food deserves particular attention, after the maximum registered in February, in March they have increased by 16.5%. It is a reduction of one tenth compared to February, when they registered their highest rate in the historical series.
It is the first time that food inflation has been reduced since September, and since then it has remained at rates above 15%. In this way, there are six consecutive months with food inflation above this 15%.
Aware of the impact of the rise in food on the most vulnerable classes, the Government has adopted measures such as the VAT reduction on basic foods that has been applied since the beginning of the year, but its effects are proving to be very limited, and the Executive is in full internal debate on whether additional decisions need to be taken.
Meanwhile, some supermarkets are adopting measures on their own, such as Mercadona, which this week announced that it is lowering the sale price of 500 of its daily consumption products until the end of the year. According to the chain's calculations, it will mean a discount of up to 150 euros per year in the shopping cart of its customers. In February, the Minister of Agriculture, Luis Planas, met with farmers, industry and supermarkets to ask them to transfer the cost reduction to the final product.
The Ministry of Economy points out that food prices have fallen and that Spain remains among the countries with the lowest inflation in the European Union. "This lower inflation is favoring the competitiveness of Spanish companies, as evidenced by the gains in market share and the increase in exports," say ministry sources.
