Thursday, December 2

Inflation hits 1992 highs due to energy

The European Central Bank insists that it is transitory, but inflation continues to worry and revised data from National Institute of Statistics (INE) on the Consumer Price Indices for the month of October they leave a rise to 5.4% year-on-year, 1.4 points above the rate registered in September and the highest since September 1992.

The results published by the INE this Friday reflect a rise caused, above all, by the increase in energy prices.

Electricity rose 10 percent in October compared to September, while diesel increased its price by 5 percent and gasoline increased 2.9 percent.

Likewise, the annual variation rate of core inflation, which is the general index excluding non-processed food and energy products, increased four tenths to 1.4%, which is four points below that of the general CPI, a difference that the INE states is the highest between the two rates since the beginning of the series, in August 1986.

Inflation in all but one group

All groups except one influence the increase in the annual rate, points out the INE in its press release.

The housing group, whose annual variation stands at 20.5 percent, six points above that registered in September, is caused by the increase in the prices of electricity and, to a lesser extent, gas and electricity. diesel for heating, explains the INE.

The influence of housing on the annual rate of the CPI is 0.749 points, the highest contribution among the groups followed by the rise in transport, which contributes 0.302 points with an increase of 12.3 percent as a result of the rise in prices of fuels and lubricants for personal transport.

To a lesser extent, the communications group has influenced the increase due to the lower cost of telephone services than a year ago, the group of hotels, cafes and restaurants due to the smaller decrease in the price of accommodation services, and the leisure group and culture due to the lesser decrease in tourist packages.

The rate increases in all Communities

The rise in the consumer price index (CPI) to 5.4 percent year-on-year is one tenth less than the INE forecasts), but represents a structural problem that affects the entire territory.

The annual rate of increased in all the autonomous communities in October compared to September, Castilla-La Mancha being the region with the highest increase, suffering a rise of 1.7 points to 6.5 points.

On the other side of the spectrum are Cantabria and the Canary Islands, which registered the lowest increase in their annual rate, with a rise of one point, despite the respective 5.5 and 5.3 total points for each community.

The Community of Madrid, on the other hand, saw your rate rise 1.5 points to 5.1 points. Catalonia experienced the same rise to stay at 5.2 points.

Europe does not escape the inflationary shadow

The revised INE data are worrisome, but reflect a trend that is being experienced throughout Europe, where inflation ravages most countries.

It does, yes, with notable differences. In Estonia, for example, the rate is set to rise to 4 percent, while in Greece it will stay at just 0.1 percent.

Christine Lagarde has shown her optimism that high inflation will ease once the logistics chain is back on track, but experts have called for French action.

“The impact of energy prices has left the ECB facing inflation significantly above the target, with a slowed economy. Deciding how to act depends crucially on inflation expectations, if it stabilizes, the impact will pass,” they say since Bloomberg.

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