High electricity prices hit rent, pensions, and even public parking too. Sadly, many expenses in Spain will increase due to the high electricity prices. This is hitting both Spaniards and expats alike.
Households across Spain are already feeling the unprecedented rise in electricity prices. Both households and businesses are being hit hard and in August average electricity bills are said to have grown by over 30 per cent compared to those seen in the same month in 2020. Many people have seen other prices increase too, not just their electricity bill.
High energy prices and in particular the price of electricity is the main reason that inflation in Spain has increased. This has also been seen across much of the European continent too.
In August this year general consumer prices grew by over 3 per cent compared to those a year earlier. Reportedly, 38 per cent of this increase is due to the rise in electricity prices. According to estimates from the INE, most households in Spain spend about 3.6 per cent of their budget on paying for electricity.
As reported by 20 minutes, “there are still some frequent expenses for citizens, companies and the State that are revised with the CPI (consumer price index). These include many of the rents paid in Spain, pensions, some salaries, road tolls and other municipal charges such as the price of public car parks in the city of Madrid.”
This means that high electricity prices will see prices rise in many other areas of life in Spain. In Spain each year many rental contracts are revised upwards in line with the CPI.
Contributory pensions are also altered due to the average value of CPI increases across the year.
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