Inflation in Spain has broken the downward trend that it had been marking in recent months. The end of fuel discounts from 31 December has caused a slight rise to 5,8% year-on-year, and the underlying rate, which excludes energy and fresh food prices, stood at 7,5%, an increase of five-tenths, making it the highest since 1986.
In 'The voices of Satoshi', the podcast sponsored by Bit2Me and Web3MBA, Pablo GIl, trader and economist, explained what could be one of the main causes of this inflation that does not give respite. From his point of view, "we have created a demand on steroids based on ultra-expansive fiscal policies, monetary policies that have supported these fiscal policies with interest rates at 0%, with central banks buying all kinds of assets," he explained.
This 'demand on steroids' has created, according to Pablo Gil, "a wealth effect, brutal savings rates and meanwhile we were living with a supply that was severely damaged by everything that Covid entailed: those bottlenecks in the shipment of materials, companies that have not survived the 2020 crisis... and in the end, when you have such exuberant demand with such limited supply, an adjustment occurs via prices."
