The rise in fuel costs in the Canary Islands is significantly higher than in the rest of Spain, with a cumulative increase of 20.7% in the first six months of 2026. Despite a slight easing in June, where prices dropped by 4.4% compared to May, the overall trend remains upward, significantly impacting households and businesses in the archipelago.
The gap between price increases in the Canary Islands and other autonomous communities is considerable, as none of the other 16 regions have reached a double-digit increase in the same period. This rise in gasoline and diesel prices has contributed to the general CPI reaching 3.4% in June, exceeding the European Central Bank's recommendations.
Transportation is one of the most affected sectors, with an 8.3% increase in costs in the Canary Islands, the highest rise in all of Spain. Other categories such as restaurants and accommodation have seen a 5.2% increase, and alcoholic beverages 3.7%, anticipating the impact of the summer season.
While the full impact of these costs on goods and services is not yet widespread, core inflation remains at 2.5%. The conflict in the Middle East has reignited concerns about a potential inflationary crisis, similar to the one experienced after the war in Ukraine, which took up to twelve months to fully reflect in the shopping basket.
Relief measures implemented by the regional government, such as the application of a zero rate of IGIC (Canary Islands General Indirect Tax) on fuels and increased tax refunds for farmers and transporters, have partially mitigated the escalation. However, their effect is more limited in the Canary Islands due to a habitually lower tax burden compared to the mainland.
Regional aid, extended until September 30, may need to be maintained through August, as inflation trends suggest that current measures are insufficient to fully offset the accumulated price increases of recent months.
