Fuel prices are driving up inflation. | Fernando Alvarado

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Living in the Balearics has become very expensive. Being islands has always meant that the region is one of the most expensive regions in Spain to live. However, this problem is now being exacerbated by inflation. This week the National Statistics Institute of (INE) reported that the consumer price index has increased by 9.4 percent in the Balearics compared to the same month last year.

Inflation is being driven by the increase in the price of electricity and gas, which has risen by 88.3 percent in the Balearics over the past year. But practically all consumer goods have increased in price.
The cost of running a car, for example, has risen by 22.8 percent over the past year. This is followed by financial services, which have increased in cost by 10.6 percent, and grocery shopping which has risen by 6 percent.

The price of alcoholic drinks has risen by 4.3 percent in the last twelve months, while non-alcoholic beverages have risen by 3.7 percent. Tobacco, on the other hand, has risen by 3 per cent.

Access to housing is one of the main problems facing the Balearics and the price of housing continues to rise, be it to buy or rent. The sale price of new and used housing in the Balearics registered a year-on-year increase of 5.9 percent during the month of March, according to the monthly Tinsa IMIE General and Large Markets statistics.

In terms of rentals, the INE has detected a year-on-year growth in the islands of 1.5 percent. This is even causing employment problems, as many civil servants and service sector workers are refusing to come to the islands because of the high cost of housing in particular and living standards in general. In fact, hoteliers are buying properties for their employees so they can pay affordable rents.

Grocery shopping is also particularly expensive and over the past few weeks it has increased even more.
Over the past 12 months it has risen by 6 percent.
The price of oils and fats are the products which have risen the most, by 29.3 percent, followed by lamb, which has risen by 17.9 percent, vegetables by 10.9 percent, and eggs by 10.3 percent.

None of the products in an average shopping basket analysed by the INE have fallen in price over the last twelve months. The price of fresh and frozen fish has also risen (8.7 percent), beef (8.6 percent), fresh fruit (7.2 percent), canned fruit and nuts (6.7 percent), cereals and derivatives (6.4 percent), cocoa, coffee and infusions (6.3 percent) and bread (5.8 percent).