The VAT reduction on food is diluted: 48% of subsidized products have increased in price so far this year

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Despite the fact that the inflation rate is beginning to return to the 2% path, food has consolidated itself as one of the inputs that has increased its prices the most in the last year. To alleviate this increase in the price of basic products, the Government approved a reduction in VAT on some foods at the end of last year, in order to reduce spending in the shopping basket of Spaniards. However, incessant price increases are diluting this bonus, and Almost half of the discounted foods cost more than at the end of 2022.

This is extracted from the latest report of facua, where they analyze almost a thousand foods affected by the VAT reduction in eight large distribution chains. Almost half of the products analyzed by the association, 48.4%, have already increased their price compared to what they had at the beginning of the year once the standard was applied. Discounted products that have been affected by price increases have increased month by month: in January of this year Increases were only detected in 6.7% of the products, compared to almost 50% in the eighth month of this year.

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FILE PHOTO: The fruit section is seen at a Carrefour hypermarket in Nice, France, April 6, 2016. REUTERS/Eric Gaillard/File Photo
FILE PHOTO: The fruit section is seen at a Carrefour hypermarket in Nice, France, April 6, 2016. REUTERS/Eric Gaillard/File Photo

One in three discounted foods that have raised their price are fruits or vegetables. The Government itself recognized a few months ago that the drought was going to mainly affect the price of this type of food, since - due to constant demand - it would greatly reduce the supply, impacting its prices. For example, the case of mandarins stands out: they have become 49% more expensive in the last eight months, going from costing 2.5 euros in December 2022 to 3.59 euros today. Behind fruits and vegetables, the oil has also experienced significant price increases -of between 30% and 35%-, followed by rice and pasta which have become up to 20% more expensive in some cases.

The biggest rise in To field breaks a record this month: a kilo of fuji apples has gone from costing 1.43 euros in January to now having a price of 3.69, an increase of 157.6%. In Aldi, the increase corresponds to the mesh of two kilos of El Mercado orange, from 2.39 euros at the beginning of the year to 4.99 in August (103.5%). In Carrefour there is another record rise. The kilo of Carrefour pomegranates experienced an increase of 186.9%, from costing 1.91 euros in January, it is now worth 5.49.


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In Mercadona, the package of Sabroz round rice once again saw the biggest increase: it went from 1.82 euros at the beginning of the year to 2.68 euros in August, an increase of 47.4%. In hypercorthis same product has become even more expensive, going from 1.82 to 2.79 euros (an increase of 53.5%).

The product that has become more expensive in Day Of those analyzed is the three-liter bottle of Almazara virgin olive oil, which from costing 14.46 euros at the beginning of the year has gone up to 23.10 this month, an increase of 59.7%. In eroskiinstead, is the bottle of one liter of Coosur Hojiblanca, from 5.34 to 9.99 euros, an 83.9% increase. Oil is also what experiences a greater increase in Lidl. The 5-liter carafe of Olisone goes from 23.59 euros at the beginning of 2023 to 33.75 this month of August, an increase of 42.9%.

According to the rule, from January 1, 0% VAT will be applied to the following foods to which 4% was charged: bread, flour, milk, cheese, eggs, fruits, vegetables, legumes, tubers and cereals. For its part, VAT on olive and seed oils and pasta was reduced from 10 to 5%. Thus, Facua insists on demanding that the CNMC investigate which increases have been the result of increases in costs and which imply increases in profit margins for some member of the food chain, a practice prohibited by the royal decree law by which approved the VAT reduction.

Keep reading:

Less fish, oil and meat: households reduce their food purchases by 6.7% due to inflation
The shopping basket continues to decline in a first half without respite in prices

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