The queues form early every Saturday in the Aluche barrio in southern Madrid.

Among them is Cruz, waiting patiently with her daughter.

"The rise in the price of everything is awful – I'm unemployed and I have a child, lots of responsibility and no money coming in," she tells CGTN. "At least this place helps people put food on the table."

Historically high prices

The 'Community Support Aluche' RAMA Charity Foundation, where Cruz is visiting, was set up during COVID-19 by local residents to help each other out, citing a lack of support from the local and regional administrations.

With inflation at an all-time high in 2022, food prices have skyrocketed. Sugar costs 50 percent more than last year, butter and flour almost 40 percent more and cooking oil has risen by 30 percent.

Many families spend nearly half their disposable income on daily necessities and food. And while inflation may be easing in Spain, that hasn't translated to the streets.

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As winter sets in, the demand for these charities in the city has never been higher.

Spanish people are more vulnerable than their European counterparts to inflation, as it has one of the lowest minimum wages in Europe at just over $1,000 per month. Only Portugal and Greece fare worse.

"People who have money are feeling the effects of price rises, so imagine how it is for poor families," says Rogelio Poveda, one of the main organizers in Aluche. "We hand out 7,000 kilogrammes of food every week to 350 families, and there are 150 more on the waiting list that we can't help right now."

Poveda says people are being forced to choose between heating and eating as the cold months set in.

"This started during COVID-19, when we saw that the local government was doing nothing to help people in need," he continues. "So we – the neighbors and the local community – had to step in. The queues aren't getting smaller, they're growing."

Government intervention

Spain's socialist national government has tried to tackle inflation by subsidizing petrol, putting price controls on electricity and gas, negotiating price holds on food staples and imposing windfall taxes on banks and energy company profits.

But low wages and high prices leave many struggling in poorer communities.

A report by the World Economic Outlook paints a worrying picture for the country in 2023 with growth falling and wages stagnant.

"A recession would mean more unemployment and the people who suffer most are always the working class," says Poveda. "Salaries have fallen so much that people are living day-to-day. If you lose your job then you end up in the queue."

For Cruz, who is originally from the Dominican Republic but has lived in Spain for 23 years, the outlook isn't good.

"It seems it will only get worse. We are already in a bad situation before the new year, but I think it'll get even worse next year."

Many in Spain are hoping that 2023 brings brighter news.