I don’t think anyone will be surprised to read that prices are rising in Majorca. In fact inflation was at 4.2 percent in September, almost the highest level for a decade. Higher fuel and electricity prices are being blamed. The rise in the rate of inflation will certainly dent the local economy as it tries to move clear of the financial woes caused by the pandemic. Higher fuel costs will mean that all imported articles from the mainland and even further afield will be more expensive.
As we all know Mallorca relies heavily on imports. The problem is so pronounced that even the Prime Minister is concerned. The current inflationary trend gripping Spain - and many countries worldwide - is dangerous, Spanish Prime Minister Pedro Sanchez said. We must also take into account that Mallorca is not a cheap area in the first place. Some of the prices which are being charged in local bars and restaurants are similar to those you would pay in a capital city.
I was charged 11 euros for two glasses of red wine over the weekend. I have paid less in London. It is a dangerous situation and wages are still low in the Balearics. Balearic President Francina Armengol made a direct call to business leaders to increase staff wages now that the pandemic is coming to an end. I suspect this call will have fallen on deaf ears.
A rather poor summer season coupled with higher prices spells problems for the Balearics. Hopefully, the massive investment plan announced by the government will make a difference.