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 rate in Spain for the month of March rose to 9.8%, according to advance estimates of the Consumer Price Index (CPI) released on Wednesday, March 30, by the National Institute of Statistics (INE) of the country. According to the report, this is the highest annual consumer price growth rate since May 1985.
National Institute of Statistics report on the consumer price index for the month of March Reflects an increase of more than two percentage points compared to the annual increase recorded in FebruaryWhich amounted to 7.6% compared to February 2021.
“This development is due to the generalized increases in most of its components [del IPC]. Among them, it is worth noting the increases in electricity, fuel, fuel and soft drinks, which were greater this month than in March 2021, says the National Institute of Statistics.
On the other hand, the annual variation of the so-called core inflation, which does not include unprocessed food and energy products, rose to 3.4%. This is the largest increase in this rate since September 2008, according to the National Institute of Statistics.
Impact of the war on the Spanish economy
The fact that the record rise in inflation is mostly due to increases in food and energy, It means that the invasion of Ukraine played an important role in the final figure for March, which is almost two digits. According to local media, for the head of the Spanish government, Pedro Sanchez, the record price increase “73%” is attributed to the impact of the war in Ukraine.
«At 73%, [el aumento] “This is explained by the exorbitant price of energy and unprocessed food, which has been exacerbated by the war in Ukraine,” the Spanish president said during his appearance before Congress to present a report on the latest European and NATO summits. The president said the emergency plan approved by the Cabinet on Tuesday 29th would allow “bending the inflation curve and stabilizing the cost of living”.
Spaniards reject increases
The Funcas Analysis Center, dedicated to researching social and economic interaction in Spain, estimates that Annual average inflation in 2022 will grow to 6.8%. Taking into account the emergency plan approved by the government, it could drop to 5.8%, says Funcas, who stresses in any case that the estimate is “very high”.
In 2021, the average annual inflation was 3.1%, which means an increase in it of almost 100%, and the figure for March is more than three times the average in 2021.
On social media There is a widespread rejection of the annual inflation rate of nearly 10% in March, Especially with regard to attributing the price increase to the war between Russia and Ukraine. Twitter user @PauBarbut is following the trend of highlighting that Spain has the highest inflation rate in Europe. “Spain suffers twice as much from inflation as France. Putin’s war is not the same for everyone. Sanchez’s government is made up of useless sectarians.”
Another user, VidalQuadras, refutes 73% of the responsibility the war will bear in increasing inflation, according to the prime minister. we will, The increase from 7.6% in February to 9.8% recorded in March was only 31%.. “The 73% figure that Sanchez presented in Congress is simply an invention. His rudeness had never been heard before.”
User @josemgutierrez notes: “Inflation in Spain today is higher than in Venezuela, who would say?” According to figures from the Central Bank of Venezuela, the changes in the National Consumer Price Index (INPC) for January 2022 were 6.7%. This indicator fell to 2.9% for the month of February, according to the issuer.
On the other hand, uncertainty in the face of escalating inflation can create opportunity for Bitcoin and cryptocurrencies, Because it represents an alternative way to invest.
In an interview with CriptoNoticias, a BitBase representative Enrique de los Reyes tells how economic difficulties in Spain four years ago allowed the start of installing a network of Bitcoin ATMs that has already been extended to 85 machines. The executive says, “When a country does worse, crypto adoption is better.”