Spain’s Inflation Falls For The Fourth Consecutive Month
Spain News
Published: 29 November 2022 14:05 CET
According to the Consumer Price Index (CPI), Spain’s inflation fell to 6.8 percent in November.
The figures that were published by the National Institute of Statistics (INE) on Tuesday, show that for four consecutive months Spain saw its inflation rate drop.
The data for October showed that a rate of 7.3 percent was registered, meaning that November's rate was half a point lower and it's all due to the drop in fuel and electricity prices.
This is the lowest inflation rate since January 2022, when it was 6.1 percent.
If the estimate is confirmed, November will close with a CPI that is four points lower than the peak of 10.8% that was registered in July, the maximum since September 1984. In monthly terms, November inflation fell one-tenth compared to October.
Because the CPI is used as a reference average between the months of Dec and Jan, if the estimated inflation of 6.8 percent for November is confirmed, pensions and minimum vital income could increase by around 8.5 percent.
The Bank of Spain and the Independent Authority for Fiscal Responsibility (Airef) calculate that each percentage point that inflation rises suggests an increase in the cost of pensions of 1,800 and 1,500 million euros, respectively. This would mean that the revaluation of 8.5% would cost between 15,300 and 12,750 million euros to the public coffers.
According to the INE estimate, despite the moderation of general inflation, the underlying inflation rate increased one-tenth in November to 6.3 percent. This contradiction is because the underlying inflation rate does not include energy products or unprocessed food, which are responsible for the reduction in the general data.
The Government has celebrated the "positive impact" of the measures that have been implemented to cushion the rise in prices.
Speaking to the Europa Press, sources from the Ministry of Economic Affairs said "Inflation has dropped four points in the last four months, which places Spain as one of the countries with the fastest and most intense decline in the European Union.”
On the other hand, Juan Bravo, the Secretary of Economy of the PP has been less enthusiastic. Speaking in an interview on RNE he said "We are still a long way from the ECB's ambition of 2% and it will not be a reality in 2022 or 2023.
"We cannot relax, we must continue to make reforms and try to help so that the effects of inflation do not have direct repercussions on citizens.”
Sources
https://www.20minutos.es/noticia/5080540/0/la-inflacion-baja-por-cuarto-mes-consecutivo-y-se-situa-en-noviembre-en-el-6-8/
https://www.reuters.com/markets/europe/spains-12-month-inflation-slows-down-68-november-2022-11-29/
