A thread of blood slides down a metal platform whose outcome ends at an edge where more liquid clumps together until, after a few seconds, it becomes a drop that falls to the ground, creating a small puddle. It is a shelf in the Santa María de la Cabeza market, where the fresh meat has been displayed all morning for the residents of this Madrid neighborhood to demand it. The day is over and there is an almost thunderous silence that is interrupted by the heels of an elderly lady. She is irascible about the prices, “they go up little by little and we don’t know about it, but this month has been a horrible rise“. The woman who comes out ‘fired’, as if she had suffered a robbery, sentences:” Everything has gone up: the meat, the fruit, the vegetables … even the bread. “
Last Thursday, the National Institute of Statistics published a leading indicator of the Consumer Price Index (IPC) and the Harmonized Consumer Price Index (HICP). Two instruments used by the public body to measure the impact of prices on end users. Thus, the first indicated that these had increased to 5.5%, which would mean an increase of one and a half points in their annual rate. While the second – which is more exact since it does not include those more volatile prices, such as unprocessed food or energy products – would have reached 1.4%. That is, four tenths more than a year ago. However, what is most striking is the distance between the two indicators, which is the highest in almost 30 years.
“Prices have risen, especially loin, ham, salami, chorizo or ham (1 euro plus the latter),” says a young butcher. “We don’t upload it to fuck people, the problem is that they raise the price when we buy it and then we have to adapt“A similar reality lives in the nearby greengrocer where the fruit vendor, who is ordering some cucumbers, assures that prices” are going up a lot, a lot “and continues,”there are some products that are 15 or 20% more expensive. In the end, suppliers give us expensive prices for energy and we have to sell them at a higher price. “
Meanwhile, end consumers express their dissatisfaction with prices. “I have noticed the rise in eggs and meat, but where else in the fruit and the vegetables“Says a man – in his sixties – who is adjusting his mask in the street and walking with a cart full of products. Suddenly, he slows his stride, lowers his voice, and as if he wanted to tell a confidentiality of some from the neighborhood, he releases, “the half melon is now worth five euros and before you took them for two euros and something”. A perception confirmed by a man of Latin origin who says that “everything has uploaded“and a woman, who will be close to seventy years of age, and who confesses that her shopping basket has become more expensive,” I have noticed it a little, especially this month. “
“The family is suffering in three ways: the cost of the purchase, due to the taxes to be paid -although their income has decreased- and now due to inflation -which for savers was already having a zero return (due to low interest rates) – which causes them to increase losses, “says Gregorio Izquierdo, general director of the Institute of Economic Studies. The economist calls for” prudence “with the management of this problem and assures that the way out must be by carrying out three actions: “increase economic freedom, lower taxes and public investment”. Finally, he gives as an example the way in which Spain overcame the oil crisis, “we reduce the intensity of oil consumption.” An attitude that believes that it should be done with gas, because, in the end, it is a “short-term” problem.
A reflection shared by the economist Francisco Coll Morales, “as soon as the decoupling between supply and demand derived from the pandemic – such as the current energy crisis – diminishes, inflation should be moderating.” However, he warns, “it is transitory, but less than the previous ones, so we must be very vigilant, especially in a scenario in which we must begin to adopt measures regarding monetary policy. ” On the other hand, Coll argues that what is happening in the market as a result of energy prices is a “normal” phenomenon in the economy, “this increase in costs will end up being passed on to consumers due to higher production costs, so the sale price will be higher. “
Source: LA INFORMACIÓN – Lo último by www.lainformacion.com.
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