Periklês

Contrary to recent ill-informed suggestions on the forum that Spain does not recognize there is an economic crisis, this report in El Pais is one of many reporting on the extent of the problem. Here, Tenerife is singled out as the region of Spain with the highest deflation, with the construction and tourist industries, 'the two driving forces of the island', in depression. With an unemployment rate of 26%, nobody is buying anything, and shops are offering huge discounts in an effort to get people spending in the run-up to Christmas. Hotels are also offering large discounts. The IPC (Consumer Price Index) fell 2% in October in Santa Cruz, the largest recorded drop in Spain.

The director of Mercadona in Tenerife has confirmed that their prices have on average fallen by 10% in the last year. (What is not said is that this is partly because a few expensive brands have been withdrawn, not that they are cheaper). Some workers have opted for a drop in salary rather than redundancy.

Some experts are denying there is deflation, for example José Manuel Soria, economic vice-president of the Canaries (well, he would, wouldn't he?) claiming this is just a temporary price drop before Christmas. Others, like the economist José Carlos Francisco claim there is open deflation and that the Canaries 'have lost half a decade of growth'.

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Si yo fuera tú, me iría fuera. Pero aunque me fuera fuera no sería tú.

pelinor

Apart form food items I have not see any reduction in anything except fuel. On the contrary I think some items have increased in price.

The last two items (all be it luxury items), I looked to buy here on the island were cheaper by a long way in the UK. One of the items was over 350 euro cheaper?

I went to buy a pair of jeans in Santa Cruz yesterday. 110 euro of a pair of basic Levi 501.
I didn't buy them. Had a look on the internet when I got home and on the UK high St. one can buy the same for 40 pound. Guess where I'll be buying my jeans.

Janet

Soria is just the economy minister because it's the job where the money is. I think most people in the Canaries would count him as the most .... well, I can't really say because one of the things he's known for is taking people to court when they allege he is a lying conniving thieving scumbag. Oddly he's always in court ...

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Periklês

I think the point is rather that prices have (allegedly) fallen, rather than they are high compared to the UK. If they are over-inflated prices, then perhaps deflation is a good thing all round in the end. But I'm no economist.

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Si yo fuera tú, me iría fuera. Pero aunque me fuera fuera no sería tú.