Inflationary escalation forces Spaniards to change consumption habits
The rise in prices is unstoppable. Filling the shopping cart with the same products that has previously become an almost impossible mission for thousands of families who, month after month, have to deal with the increase in basic foodstuffs, gasoline, household bills or the mortgage.
While inflation was still rampant at 10.5% in August, many households were forced to change their consumption habits with the aim of cutting certain items in their budget and supporting the rise in energy prices.
This is a trend that the Bank of Spain has been observing for months, especially among lower-income households and especially so-called durable goods, which tend to be more affected by periods of uncertainty, deterioration of households’ wealth or reduced purchasing power.
And that is exactly what is happening in the consumer goods sector. According to a Kantar study published this Tuesday, two in five Spanish households have already cut their average spending by 10% compared to a year ago.
The change in habits isn’t just due to increased involvement with white brands in the supermarket or the reduction in the number of products filling the shopping cart. The Kantar report also points out that there has been a remarkable reduction in waste levels, down 12.3% compared to the previous year.
Similarly, they point to the simplification of menus, increasing the number of single-dish meals that represented 52.4% of the total interest at the end of the first semester.
That same week, the Minister of Consumption, Alberto Garzón, drew attention to the need to provide quality food to the most vulnerable families. “In our country, the childhood obesity rate among the poorest families is double that among the richest. When there are economic problems, healthy patterns are often pushed aside,” he said.
His words came after Vice President Yolanda Díaz’s meeting with the major distributors, who have been suggested to prepare basic shopping baskets with frozen prices until at least after Christmas.
The industry does not see the measure as useful and assures that it is making a huge margin effort to avoid passing the full impact of inflation on to the final consumer. The data they process, which coincides with the Kantar study, actually point in that direction. Specifically, and according to the company, 80% of the mass consumption categories have increased the average price below the CPI level 60% in the case of products−. Of course, 20% of the categories have grown above the IPC. Similarly, 4% have maintained or reduced their prices compared to the previous year, the report said.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
