Business · Economy · 14 hrs ago

Rising prices are squeezing lower-income households in Spain

Rising prices are squeezing lower-income households in Spain

Families in Spain are facing high costs for food, energy and housing, according to a commentary on the pressure of inflation.

It says inflation is 4.9% and that lower-income workers, families with children, single-parent households and older people are especially affected.

In 2025, households with the lowest spending devoted 61.5% of their budgets to housing, utilities and food, according to Spain’s National Statistics Institute.

The commentary says rising fuel and energy costs feed into food prices, while many families are switching to cheaper brands, seeking discounts and cutting leisure spending.

Government support, including energy vouchers, is described as insufficient and due for an update in January.

Spain’s central bank forecasts average inflation of 3.7% in 2027, while the European Central Bank warns energy costs will push food prices higher in coming quarters.

The commentary calls for political parties to agree on a pact to improve workers’ incomes and families’ living standards during the election campaign.

Sources

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