The rise in energy prices in May shot up prices to 2.7% compared to the same month in 2020, five tenths above April (2.2%), which is the highest rate since February 2017.
The leading indicator of the consumer price index ( CPI ) published this Monday by the National Institute of Statistics ( INE ) is marked by the increase in fuel and fuel prices , which in May 2020 fell in full confinement due to the pandemic.
Fuels are the most expensive
Thus, gasoline is 23.97% more expensive than just a year ago , so filling a 55-liter tank costs, on average, 14.36 euros more than then, while diesel has risen 22.64 % in the last year, which makes adding the same amount of this fuel 11.72 euros more expensive.
The Government proposes to Brussels to raise the price of diesel by the end of 2022
Despite these increases, gasoline and diesel are still far from the maximum prices registered for both fuels on September 3, 2012, when they reached values of 1,522 and 1,455 euros, respectively.
In fact, when looking at core inflation – which does not take into account unprocessed food or energy as it is the most volatile – prices increased by 0.2% in the year-on-year rate, two tenths more than in April, thus it is more than two and a half points below the general CPI.
For the professor of the Department of Economics and Finance at Esade, Pedro Aznar, it is “to be expected that as energy prices increase, so does transport prices, which makes the prices of companies more expensive and ends up being transferred to the final price that the consumer pays “.
“Forced” savings during the pandemic
Therefore, that underlying inflation will also increase, although in a moderate way, he explained in statements to Efe Aznar, who considers that the pandemic has generated “a lot of relatively forced savings” and it is unknown to what extent and with what speed it will be transferred to consumption generating inflationary tensions “.
“If the inflation rate remains at a more or less constant rate in the coming months, above 2%, that could be a wake-up call for the European Central Bank ( ECB ) to consider what to do. But seeing the zero underlying indicator that we are still far from that situation, “added Aznar.
Possible intensification of the rally
If inflation is confirmed on June 11, the rise in energy prices would intensify in May the strong rise in prices already registered in March (1.3%) and April (2.2%), after a 2020 negative CPI to which followed by a small increase in January 2021 (of 0.5%, due to the storm Filomena ) and stability in February (rate of 0%).
From the unions, UGT has considered it necessary to increase wages and guarantee income , protecting the most vulnerable, so that the economic recovery benefits all people, leaving no one behind.
Specifically, he has claimed to raise the SMI , frozen in 2021 at 950 euros ; or modify the regulation of the minimum vital income ( IMV ), in order to “increase the insufficient degree of current coverage”.
In monthly terms, prices rose 0.4% in May compared to April, a month in which they had already risen 1.2%.
The harmonized consumer price index (HICP) -which measures the evolution of prices with the same method in all the countries of the euro zone- stood at 2.4% , four tenths above that of April.