Spain is experiencing the highest inflation in the last 40 years, which directly affects the cost of living of its citizens. this IPC March advance stopped 9.8%double-digit numbers and this increase in the price of the shopping cart are hurt by the workers, among whom the majority do their jobs. purchasing power because their salaries They do not rise at the same rate. And this increase in prices worries about 10 million. retireesEven after the government’s recent reform, it protects its benefits against escalating inflation.
Last year, the Executive agreed with employers and unions on a reform that introduced several key innovations in the public pension system. One is the automatic reassessment of contributions based on the average CPI for the year. It is calculated by adding the annual CPI between this month. December and one November and dividing that number by 12. Last year, this calculation yielded the following result: 2.5% then pensions finally increased from January 1, 2022.
Do not confuse this concept with popularly called data.IPC real“is just looking at the CPI for the month of December (6.5%). The government has adopted this reference because it thinks it better reflects the reality of the whole year, because if December coincides with a very high CPI, it will trigger the pension in favor of the buyer, but for that month. retirees lose their purchasing power if data is particularly low and comes from much higher numbers.
We will have to wait to see how the CPI develops in the coming months to find out how much pensions will rise from 2023. Currently, and without serving as a reliable reference, the average CPI so far this year is 7.5%, given the high volatility of prices and the future uncertainty surrounding the effects of the war in Ukraine.
It is unknown that it will depend on many variables: Government measures to restrict it electricity price or to subsidize the most affected sectors they serve to control prices. Whether employers and unions closed a wage agreement that did not contain inflation. How long does a war conflict last and how big is it in the end. How energy operators are responding to all this. As well as a long variable variable.
Some workhouses are publishing and revising their forecasts for this 2022. funcasfor example, he updated his calculations last Wednesday and the year average of the CPI 6.8%. If these estimates are met, the Government should increase their subsidized pensions by 6.8% from 1 January 2023. other organisms such as European Central BankThey are more moderate in their latest forecast (as of March 10) and expect the CPI to end at 1. 5.1%. The high volatility of the scenario means that this indicator may undergo significant changes throughout the year, which will change the average the Government referenced in December to update the pension table.