Funkas’ director of international status and economy, Raymond Torres, this Monday assessed some of the measures adopted by the government to control inflation and indicated that the fuel bonus had no effect “over the short term”, While highlighting that the limit on gas can reduce the Consumer Price Index (CPI) by one percentage point.
“There are measures that I think haven’t influence more than short term and those that are questionable in the long term, such as Subsidy for fuel of 20 cents (per litre). already eaten , increase in oil price, It doesn’t have much focus and doesn’t help groups that are in trouble. It is a subsidy that is not needed for those who do not need it,” Torres emphasized in an interview on RTVE gathered by Europa Press.
On the other hand, the Funkas expert has posited that the cap on the price of gas used to generate electricity, approved by the government, would mean an average price of around €50 over the next 12 months and which is still pending formal verification. . Brussels, “yes, it could have a greater impact on inflation”, in particular, around “one percentage point”.
In addition, he has advocated the maintenance of measures affecting “for the entire duration of the energy crisis”. electro-intensive companiespart of whichin danger of disappearing», although he clarified that while useful, “they are not going to reduce inflation” as they are still compensation formulas for difficult sectors.
Regarding the moderation in prices of the wholesale electricity market in Spain, which closed with an average monthly price of 187.12 megawatt hours (MWh) in May, compared to 191.51 euros in April and 283.3 in March, Torres highlighted that That it is going down as Spain manages to import gas “at slightly more affordable prices”.
«In Spain we are lucky because we have regasification plants, an infrastructure that allows us to import liquefied gas in better conditions, for example, Italy or Germany, which are heavily dependent on Russian gas, whose prices are very high. are high and even with the risk of a total cut in supply, which will put the industry in those countries at great risk”, he assessed.
Moderation in wages
When asked whether inflation is peaking in Spain, the Funkas expert pointed out that “the key is in wages” and assessed that, if the “path of moderation” is maintained in them, one might think that price rises will peak. is or will be near the summit.
«If wages are recovered to control the lost purchasing power and there is a kind of struggle between different sectors of society to try to regain the purchasing power, then Inflation may remain at very high levels“, has warned.
Along these lines, he stressed that in the “long term” it would be important to achieve “a sort of income settlement” so that the cost of inflation is shared between employers and workers so that no group “assumes the entire cost”. ” “It seems very important to me in terms of the competitiveness of the Spanish economy,” he said.
Consequences of High Inflation
CPI data for May released this Monday by the National Institute of Statistics (INE) puts inflation at 8.7%, a higher rate that, according to Torres, could impact consumption by causing households to lose purchasing power.
Inflation can also affect investment climateAccording to Torres, “one of the engines” of the Spanish economy, and expansion into overseas territory, would result in a loss of competitiveness that would “take the edge off” of exports.
Funcas questions fuel discounts and calculates limited gas could reduce IPC to a point