REGIONAL minister for Economy, Lluís de Ayreflor, confirmed yesterday that in spite of the growth of 8 decimal points in inflation in the Balearics in May, further price increases are “not planned” for later in the year.

De Ayreflor said that this stabilisation was due to the fact that the price of fuel is beginning to slacken off following initial sharp increases.
Road hauliers had agreed earlier this week to pass on extra fuel costs to their freight transportation company clients and airline organisations are keeping a careful watch on fuel prices before finally adjusting their tariffs.

De Ayreflor drew attention to the levelling out of fuel prices, following the increase in production of two million barrels of crude oil a day, although he commented that this stabilisation is not yet reflected at the petrol stations. Similarly, he predicted that the inflation figure at year end will register the growth of 2 percent which was forecast by the regional government at the beginning of 2004.

Referring to two products which are often subject to inflationary price rise, the minister reported that the price of tobacco and alcoholic drinks “is tightly controlled and unlikely to rise”.

The minister acknowledged that the Consumer Price Index (IPC) in May in the Balearics “was not particularly favourable”. In his own judgement, however, the Balearics fall within the Spanish average, taking into account that the tourist season begins in April and May. “Figures for May are worse than for previous months” said De Ayreflor “but the Balearics' inflation differential is less than the Spanish average”.