Andorra's March CPI Hits 4.1%, Highest in Two Years on Fuel Surge

Andorra's preliminary consumer price index (CPI) for March climbed to 4.1%, the highest level in two years, as surging fuel prices rippled through transport and housing costs.

The Department of Statistics released the advanced indicator on Wednesday, based on 98% of monitored products. This provisional figure marks a one percentage point rise from February's 3.1% and reflects a 2.1% monthly increase. Transport saw the sharpest gains, alongside housing categories such as water, gas, electricity, and other fuels—many Andorran homes rely on diesel heating. Clothing and footwear also posted significant monthly upticks. The escalation stems from global oil price spikes following US and Israeli strikes on Iran, which quickly raised petrol and diesel costs at local stations. Andorra's heavy import dependence and diesel usage intensified the pressure on these CPI components.

The rate exceeds those in neighbouring countries. Spain's advanced March CPI is 3.3%, up one point despite a temporary fuel VAT cut. France's stands at 1.7%, a 0.8-point monthly rise.

Residents are feeling the strain. Shoppers report tighter budgets, opting for store-brand basics, cheaper proteins like chicken over pricier meats or fish, and home-cooked meals over eating out. One said a half-full basket now costs 40 euros, compared to fuller hauls before. Fuel users note filling a tank requires 75 euros instead of 50, prompting some to buy in Spain. Renters and mortgage holders worry about annual adjustments; a 34-year-old shop assistant carries lunch daily to cope, while a 52-year-old father has cut heating and restaurant visits. Students sharing flats say housing eats nearly half their income amid the squeeze.

Andorra's inflation outpaces neighbours partly due to greater import needs, higher wage growth, and fuels' outsized CPI weight. This is the steepest rate since March 2024. Final data is due on 13 April.