The INE still does not include these prices after almost a year of analysis to try to adjust the inflation determined by the cost of energy
The National Institute of Statistics (INE) still does not take into account the price of the free electricity tariffs paid by 20 million Spaniards in the calculation of the CPI (Consumer Price Index), almost a year after the agency started assessing the possibility to include it. prices for a calculation more adapted to the reality of inflation. So far, the price index only takes into account the amount of regulated tariffs (38% of the market, with nine million deliveries), but does not take into account the rest, which is the majority.
The introduction of free rates was referred to as the benchmark for adjusting the CPI and not actually increasing as much as at the start of the year. A large part of the prices of this modality were therefore below the regulated rate and above all avoided the daily price fluctuations that are characterized by the electricity market.
However, when the Iberian cap came into effect, regulated interest rates have managed to stabilize despite peaks like the one in August, and in many cases are below the price of the free rates, which had to be revised upwards and, at the same time, take the cost of gas adjustment.
In this context, the INE “continues” in the process of adding regulated tariffs, they indicate in the institution. And that has been since January. The abrupt departure of the president, Juan Rodríguez Poo, in the summer for “personal reasons”, after several months of disagreements with the department headed by Nadia Calviño, resulted in a new position (Elena Manzanera) which she held in the reformulation of the CPI and GDP are two major challenges.
By the end of the year, the data published by the INE still does not reflect much of the price millions of consumers pay for electricity. And since electricity is the product that pulls up the shopping cart the most, the agency has been working for months on the formula to include all electricity contracts in the official CPI register.
It is not technically easy, as the institution has always acknowledged. So much so that the INE wanted to include these free market contracts in its official inflation data last January. And ten months later still not. Then “it was not possible”, Statistic sources indicate.
Vice President Calviño himself has always considered that this situation translates into “a rapid transmission of inflation”. Every euro that raises the kWh of the regulated interest immediately raises the CPI. It assumed “a consideration” of a particular rate, according to Calviño. But now, with the changes in the market in recent months, having free rates would not change the IPC that much and even cause an unexpected statistical price increase.
In order to include this mass of contracts, it is necessary that the electricity companies provide their data. Given the complexity, the companies came to ask for an extension of the allotted deadline and hope that the information will be available to the INE as soon as possible. But that day has not yet arrived and there are no clear signs yet to do so in the short term.
Spanish households spend 11% of their income on energy bills, while the average monthly expenditure on gas, electricity and fuel is 211 euros. This is reflected in the ‘Home energy bill’ survey conducted by the Mutua Owners Group, which also shows that vulnerable households are the ones who spend proportionally more income on paying for energy, up to almost 25% of the total .
Due to the increase in energy bills, more attention is being paid to certain routines with the aim of reducing spending. Filling more appliances (93%), checking bills to know monthly usage (83%) and controlling the temperature of the heating or air conditioning are the three most common energy habits in the home.
The growth in energy costs has also meant that 30% of Spaniards have seen their community contribution increase by EUR 31.6 per month, some EUR 380 more per year.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
