Málaga inflation stays stubbornly high as transport and leisure prices climb

Falling energy costs have offered some relief, but many households on the Costa del Sol are still feeling the squeeze

The cost of living in Málaga continues to rise faster than the national average, with transport, restaurants and leisure activities driving inflation higher across the province.

New figures published by Spain’s National Statistics Institute (INE) show Málaga closed April with an annual Consumer Price Index (CPI) of 3.4%, compared with the Spanish average of 3.2%. The province remains one of the most expensive in Andalucía for inflation, alongside Granada and Almería.

The figures reflect the continued pressure many households are feeling across the Costa del Sol, particularly in a province where tourism and consumer spending remain major drivers of the local economy.

Transport recorded the sharpest annual increase, rising by 7.1%, while restaurant and accommodation prices climbed by 5%. Alcohol and tobacco also increased by 4.4%. There are also concerns that petrol prices could rise further in the coming months if fuel and freight costs continue increasing because of international tensions. Diesel prices are already 28.2% higher than a year ago across Spain.

Earlier this spring, concerns were already growing over affordability in Málaga after property prices in the province surged dramatically over the past five years.

On a monthly basis, prices in Málaga rose by 0.5% between March and April. Clothing and footwear saw the biggest jump at 7.4% as shops switched into the new season, while leisure and cultural activities increased by 1.5%. Restaurant prices also rose by 1.4%.

Energy costs, however, helped prevent inflation from climbing even higher. Housing, electricity, water and gas prices fell by 1.1% year-on-year and dropped by 3.9% compared with March.

Nationally, the government says lower electricity and gas prices have helped contain inflation through anti-crisis measures introduced in response to the economic impact of the conflict involving Iran. Spain had already been considering additional cost-of-living support measures earlier this spring as inflation reached its highest level in more than a decade following the outbreak of the conflict.

But some of the recent relief on household bills may prove temporary. Last week, Spain confirmed that VAT on electricity and gas bills will return to 21% from June.

Across Andalucía, inflation eased slightly to 3.2%, largely thanks to lower electricity prices, although supermarket costs remain a concern for many families. Food prices have continued to edge higher in recent weeks, prompting some retailers to respond. El Corte Inglés froze the price of 300 grocery products earlier this year, and this week expanded discounts to 1,300 everyday items in stores across Spain.

And while falling energy prices have offered a little breathing space, many households in Málaga are still feeling the pressure as transport, dining out and everyday living costs continue creeping upwards ahead of summer.

Image: Frauke Riether/Pixabay