Friday, March 24

Telefonica Eyes Price Increases in Spain as Inflation Hits 7.4%

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(Bloomberg) — Telefonica SA is looking at ways to increase prices in Spain as inflation accelerates to the fastest pace in nearly 33 years.

Unlike in some other key markets, such as Brazil and the UK, regulations prevent the telecommunications company from automatically passing on the cost of inflation to customers in Spain. However, Chief Operating Officer Angel Vila said in an interview that Telefonica is set to “review our prices in Spain,” in line with with its “more-for-more” strategy.

Through this plan the company expands its offerings, such as with higher internet speeds and data allowances, while also increasing its prices. It’s been in place for several years, and in the past helped boost revenues.

Spanish inflation in February accelerated to 7.4% from a year earlier, the highest since 1989, according to data published Monday. Price gains have already been hovering close to three decade highs, driven largely by increases in energy prices, among the highest in Europe.

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