These are the basic foods whose price increases with the VAT increase in October

Changes to cart prices. From this Tuesday, October 1, VAT on basic food products increases. This was established in the latest anti-crisis decree, approved by the Council of Ministers on June 25, according to which the government begins to normalize taxes due to price moderation due to inflation. Thus, the prices of oil (also olive oil), regular bread, milk or pasta, fruit, vegetables or even eggs and legumes are increasing. Filling the basket with the same products will cost us more starting this month.

On January 1, 2023, the Spanish government reduced the value added tax (VAT) on food, the rate of which was already reduced from 4% to 0%. And VAT on oils and pastes has been reduced from 10% to 5%. In June 2024, the Council of Ministers decided to extend the VAT reductions applied to mitigate inflation and to include oil in the food group with 0% taxes. But from this Tuesday until December 31 this year, VAT on basic products will increase to 2%. The super discounted food group that is increasing in price includes the following products:

Also from this Tuesday, October 1 and until December 3 of this year, the following group of foods considered basic will go from a VAT of 5% to one of 7.5%:

The case of olive oil is special. From this Tuesday, olive oil benefits from 2% VAT until the end of the year, then the super reduced VAT of 4% will be applied, as was the case before the abolition temporary of this tax in January 2023. The price of this tax basic product It has climbed by 113% since 2019, going from an average price of 3.76 euros five years ago to 8.04 in 2024.

Price forecast after VAT increase

By considering the different sections, we can predict what the rise of different staples will look like. Please note that our calculation is based on applying the percentage increase to the current web prices of major foods – in their respective private brands in the case of packaged products. It is unclear how department stores will react to the VAT increase. Remember that despite the reduction in this tax in 2023, the shopping basket has continued to become more expensive:

Virgin Olive Oil

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common bread

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A dozen L-sized eggs

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White wheat flour

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Chickpea

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semi-ripened cheese

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pear tomato

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round rice

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Macaroni

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Sunflower oil

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