The INE confirms that the IPC has not yet overcome the psychological barrier of two digits, rising 9.8% in March

• The Bank of Spain doubles its annual inflation forecast and warns of a runaway CPI at least until July

The

did not surprise this Wednesday by confirming that

in March, the first month of the war and that it coincided with the carriers' strike in Spain, which is a

and coincides with the increase in prices that the institute had already advanced at the end of the month.

This is the largest year-on-year rise in prices recorded in Spain since May 1985, when the CPI soared 9.9% and serves to confirm the expectations of economists, who predicted a

that in the best of cases could become the maximum of the year.

So far in 2022,

In monthly terms, analyzing the rise in prices that occurred in the country

, the INE has confirmed that the rise was 3%, the largest increase that has occurred in a single month since the 1970s. , when Spain was going through an inflationary crisis.

Core

, which does not take into account the price of energy products and food because they are precisely the most volatile (those that are rising the most at the moment), rose by 3.4% in March, the highest since 2008.

This last indicator is precisely the one that employers want to use to

in the coming years, with the aim of avoiding an inflationary spiral and generating second-round effects (generating even more inflation) , but the unions do not seem willing at the moment to accept salary increases so limited compared to what the prices rise.

The

, for its part, is condemned by its own pension reform to use the average annual inflation from December 2021 to November 2022 to approve a

, which will cause an

.

According to the Independent Authority for Fiscal Responsibility (AIReF), for each extra point of inflation, 1,500 million are added to public spending.

Taking into account the inflation data from December 2021 to March 2022 and in the absence of knowing the evolution of prices in the next eight months, pensions would have to rise

Why is the CPI rising so much?

The price of

, which in turn determines that of

while the Government does not achieve a change in the model in Europe, was the main determinant of the rise in prices in March, as well as the increase in

prices caused by the strike.

Housing

area of ​​expenditure in which the INE includes expenses associated with the home-

, more than 7 and a half points than in February, due to the rise in

and, to a lesser extent,

.

Transport

, for its part, rose 18.6% -six points more than in February- due to the prices of

also rose by 6.8%

, with notable rises in

,

Hotels, cafes and restaurants rose by 4.4%.

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