Sánchez wants to avoid that the rise in the CPI “impregnates” salaries and foresees that energy will drop in the middle of the year

12-28-2021 The President of the Government, Pedro Sánchez, and the First Vice President of the Government and Minister of Economic Affairs and Digital Transformation, Nadia Calviño, talk in a plenary session in the Congress of Deputies, on December 28, 2021, In Madrid Spain). The Lower House today welcomes the last plenary session of 2022 in which the General State Budgets (PGE) of 2022 are addressed, after the Senate vote in favor of including an amendment. The public accounts will be definitively approved today for entry into force on January 1. ECONOMY Eduardo Parra – Europa Press

MADRID, 10 (EUROPA PRESS)

The President of the Government, Pedro Sánchez, has assured this Monday that it is necessary to avoid that the rise in the CPI “ends up permeating the rest of the economy”, such as wages or food prices, and has indicated that one of the factors of This increase in inflation, the cost of energy, will register a “significant reduction” in the middle of this year.

Sánchez, in an interview with the SER chain collected by Europa Press, explained that the rise in the CPI has to do with the rise in energy prices and by 30% with the base effect of comparing 2021 with 2020, a year of “authentic depression “of prices due to home confinement and the fall in GDP derived from the onset of the pandemic.

“From there what we have to do is avoid what economists call the second-round effect, that is, that this rise in prices ends up permeating the rest of the economy,” he pointed out.

In principle, Sánchez has stressed that, according to the forecasts “of all analysts and international organizations”, in the middle of this year a “significant” cut in energy prices will already be observed.

Even with that, the president has affirmed that he will continue to promote the debate in Europe so that the formation of energy prices is reviewed “thoroughly”.

In addition, he recalled that the Government has extended many of the tax suspension measures that it adopted at the time to cushion prices and contain the electricity bill paid by citizens and industrial companies.



Reference-www.infobae.com

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