Inflation peaked in March, touching double digits, but the fuel subsidy has also managed to reduce the rate
In March, inflation reached its record close to double digits (9.8%), the highest rate in four decades, but in April the situation moderated slightly to 8.3%, as confirmed this Friday by the National Statistics Institute (INE). April inflation was a point and a half lower than March, but still the highest since 1986.
This large drop is due, above all, to electricity and gasoline. On the one hand, because electricity has begun to drop in price due to cheaper natural gas, increased wind and photovoltaic production and lower household consumption due to the arrival of spring. And, on the other hand, due to the drop in the cost of oil in the markets -although it is still above 100 dollars per barrel- and the bonus of 20 cents per liter of fuel applied at gas stations since it came into force on April 1 the government’s anti-crisis plan.
In fact, compared to the 61% rise that marked electricity in March inflation, in April it stood at 33.7%, while gasoline had suffered an increase of 38.8% in March that is now moderate to 29.9%. Despite this, they continue to be the two elements that are pulling the CPI rate up the most, although they are not the only ones. Data from the INE reveal that food prices registered a rate of 10.1% in April, three points more than in March, highlighting the rise in meat, bread, legumes and milk.
Hotels and restaurants also rose, posting a rate of 5.8%, almost one and a half points more than in March. And leisure and culture rose almost two points to 2.9%.
More in detail, since April of last year oils have become more expensive by 48.4%, followed by heating by 35.2%. Eggs (21.6%), milk (13.2%), cereals (13.7%), as well as poultry meat (12.7%), beef ( 11.4%) and bread (10.1%).
From the Ministry of Economic Affairs they assure that it has been a “significant reduction that breaks the upward trend of recent months, in which the first effects of the measures adopted by the Government to alleviate the economic effects of the war in Ukraine can be seen , to reduce the cost of energy for families». They also acknowledge that the “slowdown” in electricity prices has also contributed to this reduction.
In the Executive they hope that inflation will continue its decline in the coming months thanks to the limitation of gas prices that this same Friday is approved in the extraordinary Council of Ministers, which will allow a “significant” reduction in the price of electricity. “The drop in the electricity bill of homes and companies will occur as soon as possible,” they argue.
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