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Date Published: 21/10/2021

ARCHIVED - No Christmas supply crisis in Spain but prices will increase

ARCHIVED ARTICLE

Businesses in Spain have warned that rising costs will have to be passed on to the consumer

<span style='color:#780948'>ARCHIVED</span> - No Christmas supply crisis in Spain but prices will increase

Officials in Spain have ruled out any sort of supply crisis this Christmas but have warned that the price of food and drink will most likely be more expensive given the rising costs of raw materials, maritime transport and electricity. The president of the Association of Large Consumption Companies (Aecoc), Ignacio González, has urged consumers to remain calm, although transport issues have been rife in Spain since the onset of the coronavirus pandemic.

And while the CEO of Nueva Pescanova has explained that images of empty shelves in the UK are more related to Brexit than anything else, he has warned that the rise in the price of parts and freight can’t be resolved in the short-term, meaning that shoppers will certainly feel the pinch this festive season.

While companies in Spain are making efforts not to pass the cost onto consumers, the inflation data for September paints a different picture, and large toy manufacturers have already cautioned that the price of their products will inevitably go up.

The sector is optimistic that the Christmas period will be a lucrative one, but Aecoc companies, comprising 30,000 partners including Mercadona and Coca-Cola, are less hopeful about the long-term situation, fearing that the Spanish government intends to raise taxes which would impact the competitiveness of businesses and delay recovery.

Businesses have already railed against the government’s plan to increase the minimum wage, something they insist will lead to even more price hikes.

Image: Archive

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