Inflation

hovered on the verge of double digits

in Spain in the month of

March

, in which

prices rose 9.8%

compared to the same month in 2021, a

record increase since May 1985

that was driven by the rising gas, electricity and fuel prices and as a consequence of the war in Ukraine.

As the National Institute of Statistics has advanced this Wednesday and will have to confirm later, the Consumer Price Index (CPI) increased 2.2 points in March compared to February and reached levels not seen since May 1985, in which Prices rose in Spain by 9.9%, while

core inflation

-which does not take into account the price of energy products or fresh food- stood at

3.4%,

the highest since September 2008.

With this new increase, so far this year the general CPI stands at a

monthly average of 7.8% in 2022.

The data for March, if confirmed, exceeds what studies services such as

Funcas

had forecast , which expected inflation to reach its maximum this month with

8.6%.

Inflation began its upward path in the summer of 2021

but has reached very high levels since December 2021 and has now been

further stressed by the conflict in Ukraine

.

"This evolution is due to generalized increases in most of its components. These include increases in the prices of electricity, fuels and fuels, and food and non-alcoholic beverages, higher this month than in March 2021", explains the INE in its note.

In monthly terms, the escalation in inflation has also been very notable since prices have been

3% more expensive in March than in February

, a very high increase to occur in a single month.

The high inflation

hits the pockets of families

, who suffer a decrease in purchasing power,

and of companies,

whose margins are narrowed by rising costs, and in the face of widespread discontent, the stoppages of some companies and the protests, the Government has approved

a Shock Plan

with measures, collected this Wednesday in a 160-page royal decree-law that is already published in the BOE.

Its objective is to ensure that "

inflation hits the ceiling as soon as possible and begins to fall faster

than expected," sources from the Ministry of Economic Affairs acknowledged on Tuesday.

Some of its measures, such as the

bonus of 20 cents per liter of fuel,

which will come into force this Friday, April 1, could already produce a drop in the CPI in the month of April.

Others, however, such as

the granting of direct aid,

will not have the same downward impact on the index, since they are economic stimulus measures that increase the money supply and have the opposite effect.

However, the Executive has not dared to black out its goal in numerical terms.

Given the level of uncertainty, Moncloa prefers

not to reveal to what level it wants the IPC to drop.

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Know more

  • Ukraine

  • INE

CPIThe INE corrects itself and announces that inflation grew by 7.6% in February, the highest rise since 1986

Energy reform The CEOE warns that Spain will resemble Venezuela if it intervenes in energy prices or limits dividends

InflationThe war in Ukraine puts pressure on the price of food: they are already 21% more expensive than a year ago

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