Spain's agricultural sectors are finally coming to the end of a very difficult year. Unprecedented increase of production costs, frost, high temperatures and, above all, lack of water, have reduced yields of some crops significantly. The new CAP 2023-27 created some uncertainty and concern before being implemented.
Fig. 1. CPI evolution between January and November 2022
Prof. Luis Cerdá, from the International University of La Rioja, assures that news like this goes "straight to the brain", especially after months of inflationary context. In his opinion, it will have a "de-stressing" effect among buyers, who experience it as a relief, and it is very likely that purchases will increase.
Antonio Khalaf, from the consultancy firm IRI, describes the package of measures approved by the government as an "absolutely cosmetic" exercise, as, according to him, "it is practically not going to be noticed in the final bill".