Inflation driven by energy prices not causing second round effect salary nor the workers trade margin. Pension should also be increased in a limited way, but they are not doing so.
The income agreement that the government’s President Pedro Sanchez appealed for after the war broke out in Ukraine has not been formalized in a collective bargaining agreement between Employer You Federation Neither wages are increasing at the rate of CPI, nor are companies passing the total increase in their costs to final prices.
bread, meat or fruit
A statement that contrasts with data from the National Institute of Statistics (INE), which includes significant annual growth for basic goods such as pan (10%), carne of beef (more than 11%), that avenue (about 13%), eggs (more than 21%), vegetables fresh (13%) and fruit (9.5%), a very pronounced increase in items like Oil olives (42.5%).
Although they are adding “too much” to consumers, senior economists at the Savings Bank Foundation (FUNCAS) Maria Jesus Fernandez Explains that “this does not mean that companies are increasing their margins.” Prices “don’t even remotely reflect these cost increases,” he says.
Director General, Institute of Economic Studies (IEE), Gregory LeftIt ensures that Spanish companies have accumulated 11,000 million euros Loss between 2020 and 2021, and another 6,600 million in the first quarter, a period in which 82% of companies have seen their cost And only 40% have increased the price of their products.
82% of companies have seen an increase in their cost and only 40% have increased the price of their products.
“Most companies carry this cost Loss and not for prices and that is why the underlying (inflation) is much lower than the normal rate”, says Izquierdo in reference to the fact that the rate of return Indian Penal CodeNot counting energy or fresh food, it is at 4.4% compared to the normal rate of 8.3% in April.
Deputy Director of Research at the Valencian Institute of Economic Research (Ivy), Joaquin Moudosbelieves that “it benefits the entrepreneur to avoid transferring all increase in raw material cost to margin if he wants to maintain his competitiveness in prices”.
All three experts also agree that it is not possible to control how companies transfer inflation to prices, noting that market is free and is governed by supply and demand.
Fernández (Funkas) does not see that “it is legally possible to visit an establishment to see how much their products have grown”, other than the fact that “each has its own situation and there are such businessmen”. those that need to be done. transfer Mayor Not for prices and others.
Margin is not determined through regulation, but through the free play of supply and demand
« Lose margin They are determined not through regulation, but through the free play of supply and demand”, says Izquierdo (IEE).
On the salary side, Funkas Economist says she rejects a rent agreement “General” and bets on measures that are “suited to the conditions of each company and sector”.
in the opinion of Moudos (IVE), the income agreement “is the only way to share the cost of an increase in the price of raw materials imported from abroad”, an increase that “assumes a penury that we all must bear (companies, workers, civil servants, pensioners)».
Retirement and Income Compromise
Maudos and Fernandez stressed the need for retired They also bear part of the cost of high inflation.
This decision of re-evaluation of pension will have to be paid with blood, sweat and tears for the coming generations.
“There was a historical error And very serious” because the next generations “will have to bear this, they will have to pay for this decision with blood, sweat and tears,” said Fernández (Funcas) in reference to the 2021 reform that forces pensions on average. To be re-evaluated with annual inflation.
In this regard, remember that currently average pension This is higher than the average salary of a young person and will remain so in the future as “more taxes and social contributions await them to pay those pensions.”
“It is necessary to increase fiscal pressure. Otherwise, the accounts don’t come out”, explains the deputy director of research at Ivy, who points out that “the weight of indirect taxation in Spain is less compared to other developed economies”, due to the fact that there are many goods and services. tax is levied reduced VAT over-reduced.
There is a need to increase fiscal pressure. otherwise don’t eat
Fernandez (Funkas) defends raising tax collection VAT, from which it will be possible to compensate for low income.
For Izquierdo (IEE), however, it’s time tax deduction and improving public spending management.
It is a disaster caused by inflation in the Spanish economy.