Key facts:
Compared to March 2021, the price increase is close to double digits.
Excluding food and energy, core inflation rose to 3.4%.
The estimated annual inflation in Spain for the month of March rose to 9.8%, according to the advance estimates of the Consumer Price Index (CPI) published this Wednesday, March 30, by the National Institute of Statistics (INE) from the country. This is the highest annual growth rate for consumer prices since May 1985, according to the report.
The report from the INE on the March CPI reflects an increase of more than two percentage points compared to the annual increase registered in Februarywhich was 7.6%, compared to February 2021.
«This evolution is due to generalized increases in most of its components [del IPC]. Among them, it is worth noting the increases in electricity, fuels and fuels, and non-alcoholic beverages, greater this month than in March 2021, ”says the INE.
On the other hand, the annual variation of the so-called core inflation, which does not include unprocessed food and energy products, increased to 3.4%. This is the largest increase in that rate since September 2008, says the INE.
The impact of war on the Spanish economy
The fact that the record rise in inflation is due predominantly to increases in food and energy, implies that the invasion of Ukraine played a significant role in the final figure for March, which almost reaches double digits. According local mediaFor the President of the Spanish Government, Pedro Sánchez, the record increase in prices is attributable “73%” to the impact of the war in Ukraine.
«In 73%, [el aumento] It is explained by the runaway price of energy and unprocessed food, all exacerbated by the war in Ukraine,” said the Spanish president during his appearance at the congress to report on the latest European and NATO summits. An emergency plan approved on Tuesday 29 by the Council of Ministers will allow “bending the inflation curve and stabilizing the cost of living,” according to the president.
The Spanish reject the increases
The Funcas analysis center, dedicated to researching social and economic interaction in Spain, estimates that the annual average of inflation will grow in 2022 to 6.8%. Taking into account the emergency plan approved by the government, it could drop to 5.8%, says Funcas, who affirms that in any case the estimate is “very high.”
In 2021, the annual average inflation was 3.1%, which would imply an increase in it by almost 100%, and the figure for March is more than triple the average for 2021.
on social media there is wide rejection of the percentage of almost 10% annual inflation in March, and especially towards the attribution of the price increase to the war between Russia and the Ukraine. The Twitter user @PauBarbut follows the trend of highlighting that Spain has the highest inflation in Europe. «Spain suffers twice as much inflation as France. Putin’s war is not the same for everyone. The Sánchez government is made up of useless sectarians.”
Another user, @VidalQuadras, refutes the 73% percentage of responsibility that the war would have in the increase in inflation, according to the Prime Minister. Well, the increase from 7.6% in February to 9.8% registered in March, is only 31%. «The figure of 73% that Sánchez has given in Congress is simply invented. His impudence is unheard of ».
The user @josemgutierrez notes: “Inflation today in Spain is higher than that of Venezuela, who would say?” Agree to figures of the Central Bank of Venezuela, the variations of the National Consumer Price Index (INPC) for January 2022 was 6.7%. This index fell to 2.9% for February, according to the issuing entity.
On the other hand, the uncertainty in the face of an escalation in inflation can result in an opportunity for bitcoin and cryptocurrencies, because they represent an alternative route of investment.
In an interview with CriptoNoticias, BitBase representative Enrique de los Reyes tells how the economic difficulties in Spain allowed four years ago to start the installation of a network of bitcoin ATMs that has already been extended to 85 devices. The executive states that “when a country is doing worse, the adoption of cryptocurrencies is better”