• Thu. Sep 23rd, 2021

UGT Asks CEOE To Address The Rise In SMI Due To Inflation

ByRoger Fisher

Aug 16, 2021

The Union General de Trabajadores (UGT) union called for an increase in the minimum interprofessional wage (SMI) so that people with fewer resources can cope with the increases in the prices of essential goods and services. “With such a remarkable growth in the price level, it is inadmissible that the salary of those with a lower salary is not adjusted upwards,” the union defends in a statement.

The Consumer Price Index (CPI) fell 0.8% in July compared to the previous month and placed its interannual rate at 2.9% , two tenths above the previous month and its highest rate since the beginning of 2017 -when it stood at 3% -, according to data published this Friday by the National Institute of Statistics (INE). The rebound is the seventh month with positive levels and the fifth month growing.

In addition, the union appeals to the CEOE employer to negotiate a new collective bargaining agreement to agree on a salary path adjusted to the circumstances of each sector and company.

Due to the rising cost of basic products such as food and non-alcoholic beverages, UGT warned that “the increase in the price of goods and services necessary for subsistence can leave many families in vulnerable situations or aggravate their situation”

For UGT, it is essential to reinforce social protection and promote that the way out of the crisis is done with “strong support” from fiscal policy to ensure that no one is left behind. “It is urgent that there be an increase in family income so that poverty and inequality do not increase,” he concludes.

Constant inflation increase
The Consumer Price Index (CPI) fell 0.8% in July compared to the previous month and placed its interannual rate at 2.9% , two tenths above the previous month and its highest rate since the beginning of 2017 -when it stood at 3% -, according to data published this Friday by the National Institute of Statistics (INE). The rebound is the seventh month with positive levels and the fifth month growing.

By sectors of influence on July prices, the rise in prices of accommodation services has mainly contributed, which add up to one and a half points at the June rate and stand at 1.5%; that of food and non-alcoholic beverages , with a variation of six tenths compared to June and 1.6%. In addition, the fact that telephony prices remained stable , compared to the setback they experienced in the same month of 2020, contributed.

At the other extreme, the drop in prices in the housing group stands out, which cut its annual rate by 1.5 points, to 9.4%, due to the reduction in VAT on electricity prices. On the other hand, in July of this year gas prices increased, compared to the decline they registered in the same month of 2020.

In monthly rate (July over June), the CPI fell 0.8% after four months of increases. This is the biggest monthly cut in inflation since July 2020, when it fell 0.9%. Also contributing to this was the decrease in VAT on electricity, as well as the summer sales on clothing and footwear.

For its part, core inflation (excluding non-processed food and energy products) placed its interannual rate in July at 0.6%, four tenths more than in June and 2.3 points lower than the general index.

The CPI data by Autonomous Communities show that up to 9 regions exceed 3% inflation . Specifically, Castilla-La Mancha was the region that increased prices the most in July, registering 3.6% year-on-year. For its part, the rest of the ranking is made up of the regions of Castilla y León, and Galicia, which registered 3.5%, according to the INE.

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