August 17, 2022

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Inflation has risen to 6.7%, at the level it was nearly 30 years ago

Inflation has risen to 6.7%, at the level it was nearly 30 years ago

the inflation In December, it rose to an annual rate of 6.7%, The highest level in three decades. consumer price index (IPC(It rose again in December to 1.3% compared to the previous month, according to the advanced indicator published by the National Institute of Statistics)else). The level reached this month, if it is confirmed by the final data in the middle of next month, It is the highest since March 1992.

It is noticeable in this development that the price of Electricity, higher this month than it was in December 2020. It also affected, albeit to a lesser degree, the increase in prices feedCompared to last year’s decline. As a result, the general level of prices increased compared to the previous month It is the second largest company in the world, after October (1.8%), followed by April (1.2%) and March (1%).

The data reflects that the rise in the general price level, which started with energy, you move to the group. the Core inflation (The general index excluding unprocessed food and energy products, the most volatile elements) rose four-tenths to 2.1%, nearly five points lower than the general CPI.

According to data from the National Institute of Statistics, the estimated annual variance rate for the harmonized index is also 6.7%, more than one point higher than that recorded in the previous month. the Average annual inflation was 3.1% This year 2021, at the level of 2005, if the data is confirmed in the middle of next month.

For its part, the estimated monthly difference for HICP is 1.2%. The price level has implications for many variables, ranging from salaries to savings or pensions, although the latter is based on average annual inflation recorded last November, which was about 2.5%.

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The development of inflation contrasts with the development of wages, which as of November accumulated 1.49% in 2,757 agreements registered as of November 30. This salary increase is below the guidelines set out in the 2018-2020 Federal Employment and Collective Bargaining Agreement (AENC), which proposed salary increases of about 2% plus 1 percentage point linked to concepts such as productivity, business outcomes and absenteeism.


It also affects pensions. Pensioners will benefit from a boost to offset the deviation in estimated inflation that updated them in 2021 by 0.9%. In any case, they will not recover all that the prices raised, 5.5%, but the reference will be the average inflation from December 2020 to November 2021, which is around 2.5%. In 2022, benefits from this level should be re-evaluated. .

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In turn, this particularly high inflation affects savings in bank accounts and deposits, with an average interest of 0.01% in those with a term of up to one year; 0.47% between one and two years and 0.02% over two years, according to data from the Bank of Spain, referring to October. Official interest rates remain at 0%.