“Is it my impression or is 50 euros the new 20 euros?” A Twitter user asked this a few days ago in a tweet that went viral and has already been seen by almost 130,000 people. "They disappear in a second when you go to the supermarket, it's horrible," responded another user of the social network. "Totally," many agree, and one user adds: "Especially if you go out to eat."
It is a perception that perhaps you have also had. The general rise in prices makes money fly. Whether you pay by card or, above all, if you pay in cash, inflation has made many people feel that 20 euros are no longer worth almost anything when you have to check out at the supermarket or restaurant.
The general secretary of the College of Economists of Catalonia, Àngel Hermosilla, confirms that this perception makes complete sense: "One thing is 20 euros and another thing is what these 20 euros allow you to do. When prices go up, you can do less and less. things. Before you could buy four things and now two and a half."
The economist admits that the comparison between 20 and 50 euros is somewhat exaggerated, but makes it clear that "in inflation processes accumulated over several years, there is a significant deterioration in purchasing power." That is, when prices rise, the value of the same amount of money falls.
And, obviously, if salaries are not in line with this inflation, the loss of purchasing power of citizens is even more pronounced.
This period of skyrocketing inflation began in 2021, so we have already had prices rising for three years. Especially in areas that are very sensitive to citizens' pockets, such as food and hospitality.
This is demonstrated by the data from the consumer price index (CPI). In Catalonia, 2023 closed with an increase of 6.9% in the food and non-alcoholic beverages section, the reference indicator for analyzing supermarket prices. But in 2022 there was an increase of 13.4%, and in 2021, 4.7%.
This means that in the last three years, food prices have risen by 26.92%. What cost 20 euros at the end of 2020, now costs almost 25.5. An even more runaway increase in cases such as oil: "Oils and fats have become 36% more expensive in 2023, but looking three years ago the increase could be 50%," says Hermosilla.
Other foods that have also increased a lot in price this year are pork and lamb (11%), legumes and vegetables (11.5%) and fresh fruit (10.4%).
"If with 100 euros you made the purchase for the entire week, now with 150 you barely get there. If you add product by product, the accumulated amount is a very large price increase," concludes Hermosilla.
Something similar happens in restoration. According to CPI data, the hotels, cafes and restaurants section has become more expensive by 14.62% over the last three years. "When you were going to eat a menu in a restaurant, you made 12-13 euros. Now in many cases it doesn't go below 15 euros, or if not they have reduced the amount," says Àngel Hermosilla.
Another of the sectors that has increased the most in price in recent years is transportation, an indicator "very influenced by fuels," according to the general secretary of the College of Economists. According to CPI data, transportation was the second major section that became most expensive in 2023, specifically by 5.6%. And this accumulates in the increases of 2.3% in the previous year and 10.8% in 2021. In total, a 19.7% increase compared to the 2020 price.
Hermosilla explains that the increase in energy prices, wars, problems in the Suez Canal and drought are some of the factors that have triggered the inflationary trend in recent years.
And he predicts that inflation has not ended, although "as a general trend there is a moderation in prices." "In January there has been a small rebound, and we believe that it will continue for a few more months, probably until the summer," concludes the general secretary of the College of Economists.
This article was originally published on RAC1.
