Tuesday, July 5

Prices skyrocket in December and closed the year with a 6.7% rise




Prices close the year with a rise not seen for 29 years. As the INE has advanced today, the IPC climbed another notch in 2021 and closes with an increase of 6.7%, the highest rate since March 1992. In this way, it rises compared to November, a month where values ​​not seen for almost three decades were also recorded, more than one percentage point. Inflation, also known as the tax on the poor, once again reduced the purchasing power of Spanish wages and savings.

Statistics data reveal that the price of electricity once again had a great weight in this rise in the CPI.

It should be remembered that a week ago the wholesale prices of electricity broke the historical record again, and today it will be confirmed that this month of December 2021 is the most expensive in history. In addition, the rise in food also had an influence, although to a lesser extent than electricity, according to the INE.

On the contrary, the Statistics underlines the drop in the prices of fuel and lubricants for personal vehicles, which increased in 2020.

With the December data, the interannual CPI adds a full year with a positive rate, after it closed with a 0.5% drop in 2020. If this 6.7% is confirmed, the INE will publish the results in mid-January, Spain would deviate by more than four points from the path recommended by Europe (around 2% growth). This fact has a negative impact on the purchasing power of citizens, which is greatly diminished.

Regarding core inflation, that which measures prices excluding energy products and unprocessed food, also recorded a rise of four tenths, up 2.1%, and is more than four points below the general index.

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