This rate confirms that pensions will increase by 8.5% in 2023, as projected by the government, thanks to the revaluation formula using the CPI average of the last 12 months
Inflation will continue to fall by tenths for another month. The leading indicator of the CPI for November stands at 6.8%, half a point less than the previous month, the lowest since January (6.1%), before the outbreak of war in Ukraine and energy and food prices pan out. Data published this Tuesday by the INE indicates that prices today are four points lower than in July, when the rate reached its maximum peak (10.8%) since September 1984.
This data from November calculates the increase in pensions for 2023, which will increase by 8.5% in contributory pensions, as the government has already estimated in its National Budget (PGE). In the Pension Reform Act, the 12-month average inter-annual CPI, from December of the previous year to November of the current year, is taken into account as a reference to determine the increase. Social security must pay out an additional 12,750 million euros in order to increase pensions by this percentage.
Non-contributory pensions will almost double, at 15%, an increase applied to them last July under a change agreed by the government with Bildu in the framework of the budget negotiations. The Minimum Vital Income (IMV) of 2023 will in turn also increase according to the CPI average of the last twelve months, 8.5%.
The National Institute of Statistics assures that this drop is due to the moderation in fuel and electricity prices. That food prices remain very high is evidenced by the underlying inflation rate, which rose by one-tenth to 6.3% in November, just five-tenths below the overall figure.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
