Going down

INFLATION in Spain has dipped to below 2% for the first time since March 2021.

Inflation fell by more than one percentage point in June, reaching 1.9% year-on-year, down from 3.2% in May, with fuel, electricity and food price increases easing.

The June inflation rate puts Spain in a better place than most of its neighbours within the eurozone, where inflation reached 6.1% in May.

It’s a significant change from a year ago when inflation in Spain hit 10.8% in July 2022its highest level since 1985.

SME’s struggle

COSTS for SME have increased by 27% since the start of the Covid-19 pandemic.

And they crept up a further 2.2% in the first quarter of 2023.

A new report shows that labour costs have risen by 4.4% in the same period.

This has been put down to increases in social security contributions and minimum wage.

But the main struggle for SMEs is linked to energy prices.

While electricity prices fell by 3.5% in the first quarter of the year, they are still 107.8% more expensive than two years ago.