The inflation quirk that is costing Spain billions

The News Craving

By Belén Carreño and Sergio Goncalves MADRID/LISBON (Reuters) – Surging energy prices pushed Spanish inflation to a peak of just under 10% in March, the highest in the euro area and nearly double the 5.3% in neighbouring Portugal – despite the fact the two Iberian economies share a wholesale electricity market. The disconnect lies in the way that energy prices are built into the headline Spanish inflation figure – a statistical quirk with real-economy consequences because of Spain’s widespread indexation of pensions, wages and rents. Decoupled electricity at Iberia https://graphics.reuters.com…

Read More