The CPI moderates and closes the year to 1.2% due to the decrease in fuels | Economy

The CPI moderates and closes the year to 1.2% due to the decrease in fuels | Economy


The Government already has the first figure to calculate the rise in pensions in 2020. The CPI for December stood at 1.2%, five tenths less than the rate recorded in November, as advanced by the INE this Friday. . This is the second fall of the consecutive rate, after the index remained above 2% since May. According to the statistical institute, the moderation of the CPI is due to the fall in the prices of automotive fuels.

The price of the oil barrel, which began to plummet in October from maximums of 86 dollars, began to move to the suppliers in November (gasoline and diesel oil fell by 3.7% in monthly terms and by 2.5%, lowering their prices). annual fees). In November and a good part of December, the price of crude oil continued to fall, down to 53 dollars, with which the CPI in Spain, a country very dependent on oil, has plummeted to 1.2%, its highest level. low since April.

The CPI moderates and closes the year to 1.2% due to lower fuel prices

If it is confirmed within two weeks, it will be the first addition of the series that the Government will use to calculate the pension increase for 2020. According to the system announced a few days ago, which is included in the royal decree that will be adopted today by the Council of Ministers, the increase in the amount of one-year pensions will be calculated from now on using the annual interannual CPI between December (the previous year) and November. So, the calculation for 2020 starts with today's data.

The new mechanism replaces the index established by the Government of Mariano Rajoy, which revalued pensions a maximum of 0.25% while Social Security had a deficit, red numbers very difficult to straighten out as long as there is no new source of income to the system. During some years of the crisis, the pensioners did not lose purchasing power because the CPI was negative, but they already did it in 2016, when inflation closed the year at 1.5%, and in 2017.

By 2019, this system will be used, with the CPI average between December 2017 and November 2018. This average is 1.7%. As the budgets included a rise of 1.6%, next year, before April, the Government will compensate pensioners with a paguilla of 0.1%, a total cost of 128 million euros for public coffers. In addition, that 0.1% is consolidated for the future. On the other hand, minimum pensions will rise by around 3%, according to the draft of the decree that will be approved by the Council of Ministers today.

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