The Spanish government will allocate another 10 billion euros next year to compensate citizens for high inflation. The 4 percent VAT on food will be abolished and the tax relief for energy will be extended.
Prime Minister Pedro Sánchez announced these measures together with a one-off amount of 200 euros for people with lower incomes. The temporary discount on petrol and diesel will expire.
The new support package comes on top of other support measures, which cost 35 billion, reports the Sánchez government.
Inflation is already stabilizing in Spain. In November, prices were 6.4% higher than last year. From June to August, inflation was still above 10%. The cost of food continues to rise, so the government is hoping to do something about it.
