Canary Islands Inflation Rises to 3.4% as Transport Costs Drive Prices Higher
Inflation in the Canary Islands continued to outpace the national average in June, according to the latest figures released by Spain’s National Statistics Institute (INE).
While Spain’s annual Consumer Price Index (CPI) remained unchanged at 3.2%, despite the return of 21% VAT on electricity and natural gas, the Canary Islands recorded a higher annual inflation rate of 3.4%. Prices on the islands also rose by 0.6% during June alone.
Since the beginning of the year, inflation in the Canary Islands has climbed by 2.1%, with transport costs increasing by 6.5%, making them the biggest contributor to rising prices. Alcoholic beverages and tobacco also saw notable increases, rising by 3.5%.
Nationally, inflation has been affected by the end of temporary VAT reductions on electricity, natural gas, firewood, pellets and briquettes. These tax cuts had originally been introduced to help offset the impact of the conflict in the Middle East on energy prices.
There was some positive news for shoppers, however. Inflation for food and non-alcoholic beverages slowed to 1.9% in June, down from 2.2% in May, marking the lowest annual rate for food inflation since early 2025.
Although food price increases have eased, the higher cost of transport and energy means many households in the Canary Islands continue to feel the pressure of rising living costs.
