Mallorca shops struggle as Balearic inflation hits 5.1%

Mallorca’s small shops face weak sales and rising costs as Balearic business association CAEB puts inflation at 5.1%. On Wednesday, 14 October, the Balearic government meets unions and business representatives in Palma, Mallorca, to discuss the pressure on the islands’ economy. Economy minister Antoni Costa says he will hear from the sectors affected before deciding whether to propose more help.

Fuel costs put pressure on prices

Tomeu Servera, president of the Balearic Islands Distributors’ Association, says the economic situation is getting worse “day by day”. Product prices will keep rising until fuel costs are brought under control, he warns. He says aid payments could help distributors pass on less of the increase.

Small shops are also struggling. Mateu Cunill, vice-president of the small-business group Pimeco, says sales are poor while expenses are climbing. He wants support that takes account of the costs of operating on islands, though he says the Balearic government’s shopping vouchers have worked.

Government weighs further help

Costa says the talks will examine the government’s first aid package to ease the economic effects of the war in the Middle East. He says it was rolled out relatively quickly, but any further measures will depend on what the affected sectors say.

CAEB is particularly concerned about electricity and fuel costs. It says the tourism sector has partly cushioned the economic impact so far, but warns that pressure on prices could persist and intensify during October.

Topics: Economy

Source: Europa Press / Mallorca.com