• Inflation and the plastic tax dilute Sánchez's VAT drop

Inflation

rose to

5.9% in January

, which means that prices were 5.9% more expensive last month than a year ago and that this increase was higher than that registered in December (5.7%)

.

while

food prices continued to rise

in the first month of the

drop in VAT

on some basic products approved by the Government.

Food and non-alcoholic beverages became more expensive by 0.4% compared to December

and, in the interannual rate, their price was

15.4% more expensive

than in January 2022. This rate slowed down compared to the previous month, since in December was 15.7% higher than in the same month of the previous year.

The

core

, which includes the price of all consumer products with the exception of energy products and fresh food, was

7.5%

year-on-year, half a point higher than that registered in December.

In

monthly terms, comparing how prices behaved in January compared to December, a

decrease of 0.2 points

was registered

both in the general rate and in the underlying rate, but

food

and non-alcoholic beverages -which are not lacking in any household-

they became more expensive by 0.4%,

in line with what they were rising monthly last year (in July they rose 0.3% monthly; in August, September and November, 0.5%; and in two months they shot up : October -2.3% in a single month- and December -1.6%-).

These data have been confirmed this Wednesday by the National Statistics Institute (INE) and

slightly correct those advanced

at the end of January, when the agency had estimated general inflation of 5.8%, one tenth lower.

The data for this month are the first that the institute obtains with the

new methodology,

a change that makes comparisons with the same month of last year difficult since now the evolution of the free market price of electricity is measured and, in January 2022, only the regulated market was taken into account.

In addition, January is the first month in which the bonus of 20 cents per liter in the price of fuel is no longer in force and in which the drop in VAT from 4% to 0%

for

common bread, bread-making flours, milk produced by any animal species, cheeses, eggs, fruits, vegetables, legumes, tubers and cereals, and

a 10% to 5%

cut in VAT on

pasta and oils.

According to the criteria of The Trust Project

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  • Taxes

  • Inflation