The Spanish shopping basket increased over 11 percent in July

Total sales of consumer goods in Spanish shopping baskets in the month of July 2023 increased by 11.3% compared to what we spent a year before, while, thanks to so-called shrinkflation and rising prices, the volume of goods only experienced slightly by 0.8 %, while prices registered a rise of 10.4%, according to the latest data published by NIQ.

Broken down by the three main sections, for another month food represented the largest outlay for Spaniards, with an increase in sales in value of 13.0%, although it is also the category that experienced the greatest growth in demand, with an increase 2.2% of sales in volume. However, both drugstore and perfumery, as well as beverages registered more moderate rises in sales in value of 10.0% and 7.2%, respectively. While beverages cut its demand by 1.4%, drugstores and perfumeries increased their volume sales by 1.8%.

Regarding prices, they continue to register upward variations compared to a year before and thus, broken down by large sections, food increased its price by 10.5%, while beverages increased by 8.7% and drugstore and perfumery was 8.0% higher, compared to July 2022.

The behaviour of the month of July in terms of the most inflationary products follows the trend registered in previous months and thus sugar continues to be the one that rises the most in price compared to a year earlier, with an increase of 34.6%, followed by large consumption parapharmacy, 25.3% more; rice, 24.1% more; frozen vegetables, which increased by 20.8%. Next, there is horchata, with a rise of 19.7%, followed by baby food, which sees its price rise by 18.2% and sun protection, which registers a rise of 15.4%, the same percentage experienced by oil that re-enters the categories that achieve the highest inflation.

On the other hand, we find the products that register lower growth in their average price compared to July 2022, where the moderation in the price increase is being noticed in products such as coffee, which increases by 3.5%, laundry detergents, with an increase of 2.9%; refrigerated ready meals, 2.6% more; nuts, 1.7% more, and makeup, 1.3% more. With little variability, grated cheese stands, with an increase of 0.9%; dietary ones, 0.7% more; period products, 0.3% more, and there are even decreases in pasta, with 0.1% less, and facial treatment, which sees its price drop by 4.9%.

Precisely and with respect to facial treatment, in addition to significantly lowering its price, it is the one that increases its demand the most, with 16.6% more in volume sales. It is a care product in the summer, just like the next category on the best-seller list: diet products, with an increase of 14.9%. They are followed by pasteurised white cheeses, with 14.6% more; grated cheese, with an increase in sales in volume of 13.9%, insecticides, with 10.1% more (another example of a summer item); ball cheeses and nuts, with separate increases of 9.3%, and air fresheners, with 8.7% more demand.

On the contrary, among the least demanded categories, there is the large consumption parapharmacy (we continue to see the end of masks and hydroalcoholic gels when we compare it with a year before), which fell by 24.3%; petit -type cheeses, which reduced their sales in volume by 14.6%, baby foods, which reduced their sales by 8.4%; the horchata, by 7.5%; juices by 7.4%: sparkling wines by 4.1%, while canned vegetables cut their demand by 4.0%, smoked ones by 3.5% or alcoholic beverages by 3.1 %.

Patricia Daimiel, general director of NIQ for Southern Europe, has pointed out that “for another month it is confirmed that prices continue to rise, compared to last year, in many categories including basic products such as sugar, rice or oil, although it is also true that they are declining in others, such as pasta. In addition, a slight increase in sales in volume is observed, after the containment trend so far this year.

“But it must also be noted,” continues Patricia Daimiel, “that, in the absence of data for the month of August, this is a special period due to the summer holidays in which consumption moves outside the home, although it is compensated by the tourist demand. “We are now faced with the return of families to their homes and the purchase of basic products to replenish stocks, something that can help us identify some trends in the coming months.”

It should also be noted that the Spanish Government introduced lower rates of IVA on some basic products, but that discount has since been absorbed by the increase in prices overall.