The inflation rate remained steady at 3.5% in October, the same rate it rose in September, according to the leading CPI indicator published by the National Institute of Statistics (INE) on Monday. On a monthly basis, the consumer price index (CPI) increased by 0.3 percent in October compared to September. electric This price drop has been largely compensated, with prices falling but less than in October 2022. fuels And moderation food, As predicted in INE’s statement, there are those who increased their prices less than last year.
The preliminary CPI for October, published by INE this Monday, will not be final until: next November 14; Then the details of the monthly change of each of the different prices during this month, including food prices, will be known.
Since November inflation data is not known, data
The inflation rate for October allows us to approximately estimate the reference for the increase in pensions in 2024. The average inflation between December 2022 and October 2023 is 3.9%. indicator rise pension for the following year, this is equivalent to the average between December and November of the following year. Once November inflation is known, we will know what the pension increase will be in 2024.
In October, core inflation, The index, which excludes the most volatile unprocessed food and energy prices, fell by 6 percent to 5.2 percent, representing its lowest rate since June last year.
This plays against October inflation data the so-called ‘base effect’, We are talking about electricity and natural gas. In October 2022, electricity bill The monthly rate decreased by 22.5%, and the rate of natural gas and city gas decreased by 8.4%. However, the ‘base effect’ in fuel and food prices works in favor of the CPI for this October. In October 2022, there was a 2 percent increase in gasoline prices and a 3.5 percent increase in diesel prices compared to September. The food and non-alcoholic beverage group had a share of 2.3%.
However, fuel prices followed a moderate course in October compared to the levels reached in September after 12 consecutive weeks of increases. In October, gasoline and diesel prices decreased for four and three consecutive weeks, respectively. European Union Petroleum Bulletin. However, prices are still above what they were before Russia invaded Ukraine.
Measures against inflation
For the government, the expected inflation data for October consolidates Spain as follows: One of the main economies of the euro area with low inflation and further growth in the entire euro area. The Ministry of Economy also emphasizes that economic policy measures support the competitiveness of Spanish companies, the gain and increase in market share. purchasing power fees. Agreement reached on average salary increase In the collective agreements made in the first nine months of the year, this rate is at 3.41%.
Within the next two months, before the end of the year, the Government will have to make a decision. If some of the anti-inflation measures are extended until 2024 Agreements agreed since June 2021 to compensate for the increase in energy and food prices, which in principle will expire in December. Teresa Ribera, third vice-president and acting minister for the Ecological Transition, was in favor of extending “most” of these measures until 2024, such as reducing VAT on electricity and gas or extending discounts on electricity bills. and gas (social bonus). However European Commission International organizations such as the IMF and OECD think that, according to the IMF’s calculations, it is time to end these measures. Tax Administration (Airef) will have a budget impact of 15 billion euros in 2024.
The data expected this Monday, in which inflation is expected to reach 3.5% in October, the highest level since last April (4.1%), is provisional until INE announces inflation. The exact data is as of November 14.