The Recovery of VAT on Food Causes Prices to Soar by 4%

The recovery of VAT on basic food items on October 1st has had a direct impact on consumers' wallets. The analysis conducted by Asufin, the financial consumers association, reveals a new 4% increase in the price of basic food items after the September price drop effect. Moreover, products that had not moved for months have started to rise, such as flour, milk, eggs, rice, or sunflower oil.

The 3% price drop experienced by the basic food shopping basket last month, before the Government reintroduced VAT after nearly two years of inflation crisis aid, has rebounded by almost 4% in October. This anticipates a "complicated end of the year in the food sector, due to the upcoming intensive shopping dates," according to Asufin.

The INE will reveal the October inflation data tomorrow, Wednesday, and this analysis, which claims that major distribution chains have raised prices driven by the increase, especially in bananas and potatoes, which have risen by 32% and 17%, respectively, will be confirmed.