The Spanish economy is in a situation of stagnation with high inflation
- The INE advances that the economic growth of the third quarter will be “around zero”
The slowdown in the Spanish economy has already been made clear in third trimester of the year (June to September), when the Gross Domestic Product (GDP) I grew up only one 0.2% compared to the previous quarter, according to what the National Institute of Statistics (INE) has advanced this Friday. This drop in activity, coupled with rising prices –inflation stood at 7.3% in October- points to the fact that the Spanish economy is already in a situation of stagflation (stagnation with inflation).
The INE has advanced this Friday that after standing at 8.9% in September, the Consumer Price Index (CPI) registered a rise of 7.3% in October, more moderate than that of the previous month but still very worrying and far from the 2% inflation that according to him European Central Bank determines price stability. This data means that prices in Spain this October are 7.3% higher than a year ago. in terms monthlythe prices have been in October 0.4% higher that in September.
The underlying inflation, which measures the evolution of all prices in the economy with the exception of those of energy products and food, as they are the most volatile, and which is an indicator of the contagion of price increases, maintained the same year-on-year growth as the previous month, of 6.2% in the previous month, but rose 0.9% compared to September.
The experts already had this cooling of the Spanish economyeven more so after learning this Thursday that unemployment rose by 60,800 people in the summer, a period in which jobs are traditionally created.
The macroeconomic model of the Independent Authority for Fiscal Responsibility (AIReF) predicted a GDP increase of 0.2% for this quarter; while the director of Statistical Products of the INE, Alfredo CristobalI had already anticipated last week that growth this quarter will be around zero.