Inflation erodes wages and food prices surge across Latin America and Europe

Consumer prices have risen sharply in several countries, putting pressure on household budgets. In Spain, the price of olive oil climbed 2.2% year‑on‑year in June, marking the first increase since October 2024 after 19 months of declines. Spain’s INE also reported that liquid fuels jumped 28.5% over the past year, the largest price rise in its CPI basket.

In Argentina, registered wages fell further behind inflation in May, with a 1.8% nominal increase versus a 2.1% CPI rise, resulting in a cumulative real‑wage loss of 4.2% since September. Observers note a broader decline in purchasing power for both private and public sector workers.

Chile’s food basket prices surged 35.9% between 2021 and 2025, outpacing overall CPI growth and driving a sharp drop in real incomes, especially in regions such as Ñuble where median wages remain the lowest nationwide.

Mexico experienced a dramatic spike in potato prices, with the cost per kilogram more than doubling in some cities between July 2025 and July 2026, driven by reduced harvests, climate stress and higher production costs.

These trends illustrate a common pattern of rising essential‑good prices and stagnant or falling real wages across the region, deepening cost‑of‑living pressures for consumers.