Farmers are the ones who have been warning so far about the impact of the drought on their crops. Now, the effects of the lack of water are reaching the food and beverage industry. Besides that, Spain remains the second most visited country in the world. The tourism sector occupies a pre-eminent place in the country's economy, where the words concern and sustainability are intertwined when drought is mentioned.
Fig. 1. Food price increases in the last year
Industry's lower price increase
Food industry inflation rose by 9.3% in July compared to the same month in 2022. This represents an easing compared to the June figures, which rose by 10% year-on-year. Between September 2022 and February this year, with the rise in raw material prices and the sharp increase in energy prices, food industry prices rose by 20%. The record was reached last October when they rose by 21.2%.
However, according to sources in the sector, the fall in industrial prices does not mean that there will be an immediate reduction in food prices, although if the trend is consolidated, a stabilisation could be achieved. Everything will also depend on how the drought evolves.