Starting October 1, Spain will see a rise in VAT on basic food items, ending a government measure that had kept these taxes at zero since January 2023. This change affects essential goods like olive oil, milk, and bread, which will now have a 2% VAT, while others like pasta will see an increase from 5% to 7.5%.

The initial tax reduction was aimed at controlling inflation amid economic challenges from global conflicts.

Despite a recent drop in supermarket prices, experts warn that the VAT increase could drive food inflation up by about one percentage point.

The government’s decision aligns with European Commission recommendations to phase out crisis measures.

As the VAT returns, consumers may feel the pinch despite a general decline in inflation rates.