Andorra Inflation Steady at 2.7% in December on Fresh Food Surge

Inflation in Andorra held steady at 2.7% in December, driven primarily by rising prices for fresh foods such as eggs, fruit and vegetables, according to data from the Department of Statistics.

Food and non-alcoholic beverages saw a monthly increase of 0.4%, contributing a +0.09 percentage point rise to the overall monthly inflation rate. This offset declines in transport and clothing and footwear categories. Year-on-year, the food group rose 2.1% compared to December 2024. Key drivers included milk, cheese and eggs, with fresh products showing the sharpest gains: a monthly uptick of 0.9% and annual rate of 2.9%, far outpacing processed foods at 1.2% annually.

Underlying inflation, which excludes fresh and energy products, reached 3.1%, higher than the headline figure and signaling sustained pressure on processed essentials. Andorra's near-total reliance on imports amplified these trends, as fresh goods remain vulnerable to origin-market volatility and logistics costs. Similar patterns emerged regionally: Spain's food inflation hit 3%, led by legumes, vegetables and oils; France saw it climb from 1.4% in November to 1.7% in December.

Throughout 2025, food prices rose almost monthly, with notable spikes in the first quarter and only brief stabilisations in February and August. Housing and dining out also added to the cost-of-living pressures.

Residents are feeling the strain. Retiree Maria Dolors Pagés said she could buy twice as much 30 years ago, now limited to essentials. She has cut back on seafood and mussels, even at Christmas, opting for minimal festive meals. Pilar Sugamo, shopping weekly for a family of four, hunts for discounts on staples like meat, eggs and beef, which now appear sporadically. She has shifted to legumes and eggs for cheaper protein and plans purchases meticulously to avoid surprises.

Athlete Marc Giménez, reliant on milk, eggs and meat for his strict diet, described a "constant drip" of increases forcing him to rethink even supplements. All three called for measures to regulate basic basket prices before the situation worsens.