The operating panel raises up to 2.4% in 2021 inflation, which adds 2,100 million to the pension invoice

The panel of the Savings Box Foundation (FUNCAS), which includes forecasts from the main Spanish analysis institutes, anticipates that inflation continues above

The operating panel raises up to 2.4% in 2021 inflation, which adds 2,100 million to the pension invoice

The panel of the Savings Box Foundation (FUNCAS), which includes forecasts from the main Spanish analysis institutes, anticipates that inflation continues above 3% the coming months as a result of the increased energy products, and estimates that the Annual average rate of 2021 is 2.4%, five tenths more than its previous forecast.

This has important repercussions on public spending, since the recent pension reform has referenced the revaluation of pensions at prices. As for 2021, that revaluation was 0.9%, the difference to that predictable 2.4% must be compensated by an extra pay, which is received in February, whose total volume could amount to 2,100 million euros.

Inflation of 2022, also revisted up to 1.6%, while the expected interannual rates for by December 2021 and December 2022 are 3.2% and 1.2%, respectively. Regarding underlying inflation, this year would reach an annual average of 0.7% and 1.2% next.

Functions noted that the rise in inflation coincides with the recovery of the Spanish economy, which will grow by 6.2% this year, according to the panelists, a tenth more than expected in July. The national demand will be responsible for this evolution, when calculating that the contribution of the foreign sector will be null - in the previous panel, a contribution of the first of 5.8 points and three tenths of the second was estimated.

Updated Date: 20 September 2021, 22:48

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