The National Institute of Statistics (INE) corrected February Inflation this Friday by announcing that prices truly increased by 7.6%, the greatest increase since December 1986, in which IPC rebounded an 8, 3%.
The INE had advanced at the close of February that the consumer price index (CPI) had risen 7.4% year-on-year in the month of February, record since 1989, by unparalleled energy and the rise in prices of Food and other goods and services.
The costs associated with housing, such as electricity, were the main responsible for the increase when shooting 25.4% in February; followed by the price of transport (+ 12.8%) for the increase of gasoline and diesel; and non-alcoholic foods and beverages (+ 5.6%). Within the supermarket, highlighted the rise of bread and cereals.
The INE has not made any change on the evolution of underlying inflation - which does not take into account the price of fresh food or energy products - leaving it at 3%, the highest rate since September 2008, which is Matches more than four and a half points below that of the general IPC.
All the Spaniards suffered a considerable price rise in February, although those who noticed it most were the Spanish-stain, with a 9% CPI; Followed by the Aragonese and Castellanoleones, which prices rose 8.5%. Extremos and riojanos are followed (8.1%) and the Galicians (8%).
The autonomous communities and cities that had a lighter advance of the IPC were Canarias and Ceuta (6.8%), the Community of Madrid (6.9%) and Catalonia (7.4%).
According to the INE, if the Government had not approved fiscal measures such as the lowency of energy tax, the CPI would have increased by 8.5%, nine tenths, as it collects in its index to constant taxes.
The increase in inflation, which began its ascending path in October 2021 by the imbalance between supply and demand derived from the pandemic, has aggravated since February 25 Vladimir Putin ordered the invasion of Ukraine, causing the price of gas It was fired at uncertainty by its supply and that the price of some products from which Russia and Ukraine are also the main exporters, such as cereals and feed.
The Spaniards noticed in their pockets the rise of electricity price - which this week has pulverized the record of the 700 euros the megawatt / hour - of gasoline - which is already paid in Spain to more than 2 euros the liter after uploading 36% - and from the shopping basket - with a year-on-year rise of food 21% -. With this, they assume a loss of unprecedented purchasing power.
Inflation has become the first threat to the world economy, as the European Central Bank (ECB) has already demonstrated by hardening its monetary policy. According to this institution, the average IPC of the eurozone could be 5.1% this year but, in the worst case, if the war worsen, it could reach 7.1%.
Raymond Torres, director of economic analysis of the operating economists panel, has already warned that the CPI could reach 8% in March and 9% in April and May, but, in case the war in Ukraine is perpetuated and The international supply of Russian gas is cut - if the West decides to stop buying it or if Vladimir Putin stops selling it in retaliation to sanctions - then inflation could reach 10%.
The psychological barrier of the two inflation digits would be broken and the battle between workers and entrepreneurs would be recruited by the wage rise. Faced with this possible scenario, the Government insists that a "Revenue Pact" is necessary in the country, to distribute the costs of war and avoid excess salaries and final prices that companies charge. Only then, they say, a spiral inflationary could be avoided that would put economic recovery in check.
Date Of Update: 11 March 2022, 18:32
