The hospitality sector in Spain sees flaws in the Bank of Spain’s analysis of transferring the increase in production costs to sales prices of non-financial companies in 2022, as there is “little consideration” for wages and other costs, including services in financial services.
Specifically, we are talking about the article published this Monday by the Bank of Spain, which explains in detail that there has been “a very high, almost complete translation” in most major economic sectors, both in the short period of time (with respect) . to 2021) as well as in length (compared to 2019) from costs to prices.
The report highlights that in the power, gas and refining sectors, “selling prices have increased more than their unit costs compared to 2021,” and the same is true, albeit “to a more moderate extent.” such as transport and storage and hospitality”.
_a826d51c-6cd3-465f-932e-89344e3e777b.jpg?resize=300%2C250&ssl=1)
In the case of these last two sectors, the Bank of Spain explains that this could be due to “the strong recovery in demand in 2022” following the lifting of restrictions, which “would have put pressure on sales prices”.
The Spanish hospitality sector assures that the price increase in the restoration is 6.7% until June 2023, compared to 10.8% of the CPI for food and drink
Knowing these reviews, Hospitality of Spain adds in a note that the year-on-year price evolution in the restoration in June 2023 is 6.7% compared to June 2022.
During the same period, June 2023, the evolution of food and non-alcoholic beverage prices was 10.8% (INE data), with products such as olive oil registering a 31% increase, a far cry from 6.7%.
Wage growth in hospitality was 12.6% over the same period, which hoteliers say is “the sector with the highest percentage increases according to the Quarterly Labor Cost Survey”.