Spain's Economy Minister Carlos Cuerpo on food prices: "Prices are falling"

Carlos Cuerpo maintains that food prices are falling and, at the same time, has called for an analysis of the entire food chain to see what is driving up the shopping basket. In terms of rate, food inflation has moderated greatly since 2023; the price level, however, remains above that of three years ago.

## What the minister is talking about
Economy Minister **Carlos Cuerpo** has stated that "prices are falling" for food, but added that this does not exempt from continued monitoring. His department has requested an analysis of the entire chain, from farm to supermarket, according to **El País**.

The phrase has a technical catch. That prices "fall" usually describes the rate: food inflation has moderated greatly since the peaks of **2023**. What has not fallen is the level. The basic basket costs more than three years ago.

## From farm to checkout
The assignment points to the intermediate links: production, processing, distribution and sale. The **Food Chain Law**, from **2013**, prohibits selling below cost, and the **CNMC** has studied margins. Who keeps how much remains the uncomfortable question.

Spain lowered VAT on basic foods from **4% to 0%** in **January 2023**. The measure has been extended in stages and its effect on the final bill is debated.

## What to look at before celebrating
Basket prices, wages and margins move at different rates. A lower rate is not always noticeable in the weekly shop. Before taking relief for granted, it is worth looking at the food CPI published by the **INE**.

With money involved, it is better not to trust a single phrase.