This new increase is mainly due to the increase in food and electricity prices, although there was a decrease in fuel prices in July
Prices re-accelerated in an upward rally that has lasted for a year and seems to have no end despite the government’s measures to deal with the war in Ukraine. For example, the annual consumer price index (CPI) rate continues to rise in the middle of the summer and shoots up six-tenths in July to 10.8%, moving into double digits and reaching its highest level in 38 years. especially since September 1984, according to the advance published this Friday by the INE, which will publish the final data in mid-July.
Inflation thus chains three consecutive months of gains, after declining 1.5 points from the blow to 8.3% in April. In May it rose to 8.7% and in June it broke the dreaded double digits: 10.2%, despite the introduction of the gas ceiling and other government measures to control prices.
The price increase, according to the statistical office, is mainly due to the rise in the prices of food and non-alcoholic drinks and electricity, as well as to the behavior of clothing and footwear, the prices of which, despite the discounts, are falling less than last year .
The slight fall in fuel prices has been of little use, which have fallen to below two euros per liter in recent weeks. Finally, refueling is now cheaper than before the bonus was launched, even without discounting the 20 cent discount.
Similarly, the estimated annual rate of variation in core inflation (general index excluding unprocessed foods and energy products) also rose six-tenths to 6.1%, the highest level since January 1993. This suggests that price increases have already accounted for most of the products in the basket and that it becomes persistent, so its moderation is becoming more and more complicated, as most experts are already beginning to predict.
The estimated annual percentage variation of the Harmonized Index of Consumer Prices (IPCA) was also 10.8%, eight tenths higher than the previous month. For its part, the estimated monthly variation of the IPCA is -0.5%.
Inflation started to pick up at the beginning of the summer of 2021, mainly driven by energy prices, with the average annual CPI closing last year at 3.1% after being negative for part of the year.
But what appeared to be a very short-term rise – this was predicted by most national and international organizations – the effects of which would disappear in the spring, is already taking too long, exacerbated by the effects of the war in Ukraine, and the fear of becoming chronic and structural is increasing.
The unions even warned on Friday that “it is no longer a temporary phenomenon that focuses on energy prices, but that we are dealing with an inflationary drive with a structural component” and therefore demanded from the government “policies that promote a fair and solidarity with the crisis.
Because the losers of this crisis in this case are all workers, who suffer a clear loss of purchasing power as the gap between prices and wages widens: while wages are increasing by convention by 2.4%, inflation is already more than four times higher .
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.
