Alan Wentworth-Harley's Marbella Property Insider

According to a survey, despite an increase in per capita income, inflation has caused more people to struggle to pay their energy and grocery bills. The 2022 Living Conditions Survey revealed a mix of good and bad news for Andalucía's economy. On the positive side, the improvement of employment and salaries led to an increase in per capita income, pushing it up by almost 8% to 10,703 euros per person per year, which is a new all-time maximum. The increase was greater than the national average of 6%, and it puts the region above the 10,000-euro threshold for the first time. Additionally, the poverty rate in Andalucía has reduced, with 29.1% of the population below the poverty line in 2021, compared to 32.3% in 2020. The proportion of people at risk of poverty was also lower, which is a relative indicator of inequality. However, despite these improvements, inflation has caused more people to struggle to make ends meet. The survey revealed an increase in energy and food poverty, with ...

The Spanish government has commended efforts to manage prices, but despite this, the core inflation rate - which excludes energy and fresh produce - remains high at 7.5%, even though the annual consumer price index for March fell significantly to 3.3% from 6% in February. The reason for this substantial decline is attributed to a 'step effect', meaning that prices have not necessarily decreased greatly since last month, but rather, compared to March of last year when there was a sharp increase in energy and raw material prices due to the Ukraine war, prices have fallen. While the government has acknowledged that recent decreases in the cost of electricity and fuel have helped to lower the rate of inflation, it still remains among the highest in Europe. The government's Economic Affairs Minister, Nadia Calviño, had previously anticipated the decrease in inflation for March, citing the measures implemented by the government to contain prices as contributing factors. The INE d...