In Spain, inflation has again moderated significantly. In June, consumer prices (HICP) measured according to the European method were only 1.6 percent higher than twelve months previously. A lower price increase sounds tempting. However, it does not necessarily mean that citizens will have more money in their wallets at the end of the month.
Inflation in Spain had risen to over ten percent last year. Causes were the war in Ukraine and the sharp increase in energy and raw material prices. The statistics office explains the now lower inflation with the fact that the prices for fuel, electricity and food rose less than a year ago.
Measure less accurately
In addition, the government is taking other measures to control inflation. However, only 12 percent of aid goes to poorer households, while 88 percent of the money goes to the general population. In Austria, at least a good third is correct.
According to experts, despite lower inflation, the Spaniards are struggling with declining purchasing power, while the situation in Austria is easing somewhat.
Slight improvement in Austria
For example, a study by the Institute for Advanced Studies (IHS) shows that there is a “slight improvement” in almost all parameters. The number of people who are faced with a loss of income, who have difficulty paying housing costs or who can hardly pay smaller costs, has decreased.
Social Affairs Minister Johannes Rauch (Greens) admitted that the social consequences of high inflation are still being felt by many people. “Nevertheless, we see that our measures are having an effect.” For example, the increase in all social benefits, pensions and social assistance has contributed to improving the situation of people at risk of poverty.
Source: Krone
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.
