España amplía la brecha de precios con el euro y ahonda en su pérdida de competitividad

Spain has further widened its price gap with the euro and deepened its loss of competitiveness, with inflation exceeding the eurozone average for the 15th consecutive month in July. The harmonized consumer price index (IPC) in Spain surged to 3.9% in July, one point above the 2.9% registered in the single currency bloc. This trend of increasing inflationary divergence has been on a downward-to-upward trajectory in recent months, causing Spain's price differential to widen and erode its competitiveness, particularly concerning its export-oriented businesses.

These negative developments are especially dangerous in a scenario where Spain's main foreign customer is the eurozone itself. Inflation in Spain rose to 3.6% in June and jumped to 3.9% in July, resulting in stagnant real export growth, according to the Club of Exporters and Investors. The price differential is most pronounced when compared to major European economies, exceeding Germany's 2.8% IPC and 1.5 points over France's 2.4% IPC.

These gaps are significant as the three countries together account for over 68 billion euros in purchases of Spanish goods, representing nearly 63% of total exports to the eurozone.