Three interesting and related statistics concerning the economy of the Balearic Islands were made public this week. First it was announced that at 4.5%, the annual inflation rate in the islands was the highest in all Spain.
Whilst the British anti-Euro tabloids might want to make a meal of this, it must be remembered that house prices (included in the inflation figure) in Ibiza have risen to the same level as Madrid and Barcelona over the last year. They have increased because of the limited space for building and high demand from wealthy foreigners eager to buy property here.
Secondly, in connection with house prices, it was announced that the average Balearic family spends the highest percentage of its income in comparison to the rest of the country on paying the mortgage, such is the cost of buying a dwelling here. Finally, at least it's good news for the pensioners because their income is linked to inflation - so they all got a lump some of almost €150 when the figures were announced!