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Spaniards reduce their food expenditure
Spain
Tuesday 08 January 2013
FJ
Wage cuts and tax increases have led to unemployment and declining consumption.
Food consumption decreased in value and volume in recent months in Spain.
The combination of rising unemployment and taxes with wage cuts has led Spanish households to reduce their budgets. According to the Ministry of Agriculture and Food, food consumption is down in value and volume for the months of September and October.
The largest decreases were recorded for olive oil (-15%) and wine (-9.4%). The overall decline in consumption
has worsened after the summer. In September with the VAT rise, many food products moved from a 7% tax to a tax of 10%.
The Department does not yet have data for November and December, but the overall demand appears to be declining. And while Banco de España evokes a "tonic contractiva" (tonic contraction), cheaper food and the discount sector remain more resilient.
The Department does not yet have data for November and December, but the overall demand appears to be declining. And while Banco de España evokes a "tonic contractiva" (tonic contraction), cheaper food and the discount sector remain more resilient.
source : el pais com
