The 0.7% increase in the Consumer Price Index (CPI) during the month of December implies a continued intensification of the upward trend that began in the second half of the year, a fact that could affect the competitiveness of the Canary Islands' economy.
This was stated by the president of the Official Chamber of Commerce, Industry, Services, and Navigation of Santa Cruz de Tenerife, Santiago Sesé, who indicated that a **progressive loss of the favorable differential** in the CPI compared to the rest of Spanish territory is occurring
“This translates into us running the risk of losing an advantage that contributes to competitiveness,” confirmed Santiago Sesé, “as the growth in costs associated with consumption and certain business inputs is approaching the national average, limiting the margin of attraction based on prices.”
There is also an increase in the year-on-year rate, after closing the fiscal year with inflation of 2.8%, a level very close to that recorded in Spain as a whole, where the rate stood at 2.9% and the highest value since July 2024. Furthermore, in the specific case of the province of Las Palmas, it rose to 3.1%.Specifically, the price increases in the last month of the year were due to the rise in prices for 'Leisure and culture', by 2.3%; 'Transport', by 1.4%, and 'Restaurants and hotels', by 1%. The president explained that "in the case of restaurants and leisure, the price increase coincides with the high tourist season, a period in which the higher level of activity and demand is usually reflected in prices".For its part, the transport group was conditioned by the evolution of **fuels** and combustibles, which registered a 1.2% monthly increase in December, in contrast to the 1.6% decrease in Spain as a whole. This behavior explains a large part of the inflationary rebound of the month.On the contrary, 'Clothing and footwear (-0.9%) and 'Alcoholic beverages and tobacco' (-0.6%) were the groups that experienced the largest price **fall** in December. Meanwhile, no group registered an annual price decrease in the last year.Beyond these traditionally more volatile components, price evolution reflects increasingly widespread inflationary pressure. Not only did fuels or unprocessed foods increase, but **the rise in prices extended to the entire range of goods and services that make up the shopping basket.**This is confirmed by the evolution of **core inflation**, which excludes the most volatile items. In December, the CPI increased by seven tenths, while for the whole year it rose 0.4 points, reaching 2.5%, one tenth below the national core inflation. These figures show that price growth broadly affects households' daily consumption"This pricing dynamic highlights inflationary pressure that is causing a loss of **purchasing power** for families, in addition to the increase in **costs for businesses**," said the president, although, at the same time, it reflects to some extent the good performance of the Canary Islands' economy, driven by the pull of domestic demand, increased consumption, positive employment data, and the influx of tourists throughout the past year, which have favored a generalized increase in demand for goods and services.President Santiago Sesé concluded by stating that, "looking ahead to the coming months, it will be crucial to continue monitoring price trends to see to what extent this inflationary pressure may moderate or, on the contrary, continue to grow."
