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ARCHIVED - Food costs rise again in Spain: these are the most expensive supermarkets
The average price of groceries has increased this month in Spain by 1.31%
It’s been a full two months since the Spanish government implemented a VAT reduction on many staple grocery products like bread, milk and olive oil but in truth, most ordinary consumers have failed to see any difference in their supermarket bill. Initially, the real cost of several products did drop in January following the tax cut, but it’s gone right up again.
The price of a basket of shopping increased by 1.31% in February and while this is only actually equivalent to 39 cents, according to the Association of Financial Users (Asufin), it begs the question, how are prices rising when VAT has been slashed?
The simple answer is that some of the most popular supermarkets have begun to hike up their prices, as observed by Asufin when they compared the cost of several common grocery items over a two-month period. Carrefour are the biggest offenders, tacking on 2.13 euros to the average bill. They’re followed by El Corte Inglés, with a price increase of 78 cents and Alcampo, which is charging 39 cents more.
On the other hand, Murcia’s favourite chain, Mercadona, has cut costs by 13 cents while Dia has applied a price reduction of 1.23 euros.
Patricia Suárez, president of Asufin, has surmised that, based on the data, the VAT measure is simply ineffective: "On the one hand, it is very difficult for the CNMC to monitor the margins and establish a compliance channel for what the decrease of VAT aims to do: make the basket of basic products cheaper."
On the other hand, she believes that it is a "measure without any middle ground, which benefits both the one who buys the most and the one who buys the least."
"While not agreeing with price caps either, we believe that government has the means to determine who needs direct help to combat the pernicious effects of inflation," she concluded.
Image: Freepik
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