Rising Inflation Drives Up Prices of Basic Foods, Hitting Low-Income Households Hardest
Inflation has driven basic food prices up by over 30%, disproportionately affecting low-income households in Spain, with calls for regulatory reforms to curb corporate power.
- • Basic food prices rose 37% between 2021 and 2024, exceeding the increase in premium products.
- • Staple foods such as meat, milk, and butter increased by 30-40%; olive oil surged over 80%.
- • Market concentration by multinationals like ADM and Cargill is a key driver of price increases.
- • Public policies have failed to curb corporate concentration, exacerbating price volatility.
- • Recommendations include regulating corporations and imposing temporary price caps on essential items.
Key details
A recent report from the Institute of Urban Research of Barcelona (IDRA) highlights that inflation in Spain is acting as an "invisible tax," significantly eroding purchasing power, especially among low-income households. Basic food items have experienced price increases of around 37% between 2021 and 2024, outpacing the 23% rise in premium products. Staples such as meat, milk, and butter have risen by 30% to 40% since the pandemic, with olive oil prices surging more than 80%. This trend, dubbed 'cheapflation,' disproportionately impacts vulnerable families who rely heavily on essential goods.
IDRA attributes these price surges not only to global economic tensions but also to internal market dynamics, including the financialization of agricultural commodities and a concentration of market power among a handful of multinational corporations, such as ADM and Cargill, which dominate the grain trade and have reported record profits during this inflationary period. Despite a stabilization in global costs since mid-2023, consumer prices remain elevated due to sustained high corporate profit margins.
The report criticizes current public policies for failing to address market imbalances and calls for measures to regulate corporate concentration and implement temporary price caps on essential food products to stabilize prices and protect low-income consumers.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.