CPI rises to 8.7% in May due to government’s delay in implementing gas cap

Government delay in implementing energy price and gas cap measures takes Spain to end of May Runaway inflation at 8.7%, ,Iberian exception’ The dispatch to Brussels by Spain and Portugal continues without the definitive support of the European Commission. This situation, which puts electricity prices in the wholesale market close to the 200 euro/MW level, Iberian gas remains above 80 euro/MW.

To this we have to add that the re-negotiation of customers Fixed annual fee triples the price of contracts. A cocktail that continues to put pressure on prices in a month in which the IPC should — as predicted by Monclo — should be at a lower level.

In a statement issued by the Ministry of Economy, which El Debate had access to, the government justified the increase in prices to the effect that the war in Ukraine is having on the economy. In the note, the department, led by Nadia Calvino, is confident that “the upcoming entry into force of electricity price ceilings in the wholesale market will provide additional insurance against potential increases in the price of energy in international markets.”

Delay in installing gas cap

In parallel, the fuel price has only increased, mitigating the effect of the bonus of 20 cents a liter introduced in early April and which will expire on June 30. The daily price of a liter of petrol 95 is close to 2 euros, diesel is over 2.14 euros. During the month of May, under pressure from energy price volatility, food prices have continued to rise.

core cpi increased

full stop . deserves the level Core CPI, which discounts growth in the most volatile products, reaches a level of 4.9%, predicting a protracted crisis of inflation that could close the year above 7%. In April last, the indicator was up 4.4%.

The rate advanced this Monday puts more pressure on public accounts. government is committed Revaluation Pension with CPI, which will require an extraordinary effort on the part of public spending at a time when Brussels has urged President Pedro Sánchez to include it. The European Commission will reactivate fiscal discipline rules that require less than 60% of debt and less than 3% of the public deficit. Spain doubles both indicators.