Consumer product prices will go up by 20% in the next few weeks because of rising fuel costs, according to the Chamber of Commerce, Navigation & Industry in Mallorca and the Balearic Transport Business Federation.
“It will be much more expensive to travel to the mainland and to transport goods,” said FEBT Chairman, Rafael Roig.
“The situation has been aggravated by the way fuel and gas costs have evolved,” said Chamber of Commerce President, Antoni Mercant. “Inflation has skyrocketed in the Balearic Islands because the price of fuel affects the entire business production chain, increasing the costs derived from transport and distribution. All products and consumer goods come from mainland ports and freight costs have gone sky high, which will have an impact on the supply chain in some Sectors due to the lack of electronic components.”
“We are going to see a general rise in prices, which will have a direct impact on inflation, consumer purchasing power and company competitiveness," adds Roig. "Unforeseen expenses will affect their income statement at the end of the year."
Airlines are warning that there will be a significant hike in ticket prices for Inter-island flights and trips to the mainland in the coming weeks.
“The increase in fuel prices must be passed on to the consumer, especially in the winter season when flights to and from the Balearic Islands are less frequent, it’s a question of supply and demand,” said a spokesperson for the Airlines. “The increases will take place before the Christmas season.”