Inflation already subtracts 9,000 million from households and triggers the tax collection

• ALEJANDRA OLCESE

  @AlejandraOlcese

• ELSA MARTÍN

  @elsa_millan

Updated Tuesday, November 302021-02: 00

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The

(in November they have grown by 5.6%, a record since 1992) is a

phenomenon

, which to date have reduced about 9,000 million euros of power purchasing; but it is

from the point of view of

public

, since the income of the Tax Agency so far this year exceeds by 8,300 million those obtained in the first ten months of 2019, the last year before the pandemic.

This is so because the rise in prices fattens the monetary bases and

; but the public sector also suffers the consequences of rampant inflation on the

side

. Specifically, the rise in prices will force the

, which represents an increase in spending of more than 3,500 million euros, and to pay a compensatory 'pay' to pensioners for the deviation of 2021 , which, according to calculations by Minister José Luis Escrivá, will require a disbursement of more than 2,000 million additional. In total, more than 5,500 million additional euros for the CPI.

The

will not rise in 2022 according to the inflation average this year, but the Government did approve in the General State Budget project an

precisely to protect civil servants from the loss of purchasing power.

This will add another

to spending next year, compared to 2021.

Both increases seek to

from the

that families are suffering in Spain due to the rise in prices and which, according to Funcas,

Faced with this loss, the

has been boosted by price increases and at the end of October was

than in the first ten months of 2019. Inflation in recent months has contributed to this difference widening, because in September it was 3.1%. This means that

than then, despite the fact that activity or production (GDP) remains below the pre-pandemic level and will not recover until 2023, according to the European Commission.

"Apart from the recovery in activity that is being witnessed in recent months (in the third quarter, total sales of large companies and corporate SMEs grew, in real terms, by 6%),

", admits the Tax Agency in its latest collection report, published this Monday.

Strike to the renters and relief to those who have debts

This means that households not only have to assume

, for example, but also

as this is an indirect tax.

The

will be another of the vital areas in which they will face an increase in costs, since most of the review clauses are in accordance with the IPC.

As an example, the average rental price in

city ​​stands at 14.8 euros per square meter in October, according to Idealista, which means that a rise with the average CPI (2.5%) would raise it to 15.17 euros.

would go from 1,332 euros to 1,365 euros, 33 euros more every month,

In

, where the average price per square meter is 6.7 euros, a 2.5% rise would make a 90-square-meter apartment more expensive by 15 euros per month, up to 618 euros.

A year, the increase will mean

On the other hand,

will benefit from the rise in prices

, since inflation eases the burden of debt.

This is so because if you owe 10 euros and prices go up, when you return those 10 euros they will no longer have the same purchasing power that they had when you contracted your debt.

And vice versa.

At the end of the second quarter (latest data available), the

(loans and debt) of households and companies amounted to

according to the latest data available from the

.

For all the indebted (including the public sector), the rise in prices is beneficial from this point of view.

However, inflation is negative for those who have their money paralyzed in a bank account or deposit, since

: as time passes and prices rise, each time we will be able to buy less with that capital.

Unions ask for pay rises

As every time a skyrocketing inflation figure is known, the

in the private sector to prevent workers from suffering a loss of purchasing power.

"UGT considers that the advance CPI data corresponding to November follow the line of the loss of purchasing power of wages, something that has a negative impact on the consumption capacity of families, weakening the foundations that sustain the economic reactivation and the creation of of employment. These data, with a price index of 5.6% (two tenths more than in October), imply a

, especially those in a vulnerable situation " , they lamented this Monday.

Therefore, they ask that the

pick up this rise - to date they have

- and that the Government now work on a new increase in the

(SMI) for 2022, since the increase of the 1.6% approved for this year with retroactive effect from September is "very insufficient".

The Second Vice President and Minister of Labor,

, also said this Monday that it is necessary to "

" beyond the minimum wage and not only in Spain but throughout the European Union, despite warnings from different institutions (such as the European Central Bank or the Bank of Spain) that ask that wages not rise in line with inflation to

Spain leads the Index of Misery in Europe

The rise in prices in recent months and the persistence of the unemployment rate have placed Spain as a leader in Europe in

devised by the American economist

which measures the economic suffering suffered by society as a result of the lack or fall of income due to unemployment and an increasingly high cost of living.

This index, which is prepared by adding the

and the

, places

in the

, with 20.2 points (unemployment rate of 14.6% and CPI of 5.6%), followed by Greece, Lithuania, Estonia, Latvia, Italy and Sweden, according to the latest data published by the OECD.

All these countries have a Misery Index

for the European Union, which stands at 11.5 points.

On the opposite side of the table are

(6.52 points: 3.1% unemployment rate and 3.4% inflation), Slovenia (3.9% unemployment and 3% inflation), Denmark ( 4.6% unemployment and price increases of 2.9%) and Portugal (unemployment of 6.4% and inflation of 1.8%).

According to the criteria of The Trust Project

Know more

• economy

• GDP

• UGT

• State's general budgets

• Taxes

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