The reduction in electricity and natural gas bills moderated the increase in the cost of living in April, both in Catalonia and in Spain as a whole. The measures approved by the Spanish government to reduce some taxes on electricity and gas had the desired effect, although, on the other hand, the cost of fuel continued to rise due to uncertainty in international energy markets because of the war in Iran.

A 66.5%. This is the accumulated inflation we have suffered between the years 2000 and 2025. In only two of these years, the value of money has remained or increased. The rest of the time, our savings have been losing purchasing power. And you don't need to look twenty-five years back to notice it: you just have to think about the last five. The price of houses, cars, or even eggs has skyrocketed.

When it is said that something can happen, it is likely to end up happening. This expression, used to refer to self-fulfilling prophecies, is common in the economic world. Throughout history, the belief that an event will occur has precipitated events. The list of examples is long: stock market crashes, compulsive consumer purchases, or deposit withdrawals are just a few. And citizens' expectations for controlling inflation are also a factor to consider.

The European Central Bank (ECB) remains cautious. The banking institution has once again avoided making a move prematurely and, despite the war in Iran and the rebound in inflation, has decided this Thursday to keep interest rates at 2% for the seventh consecutive meeting. In this way, the financial entity chaired by Christine Lagarde keeps its powder dry in case the situation worsens and, in fact, has already warned of "the high uncertainty" of the Eurozone's economic future due to the war initiated by Donald Trump.

The fiscal measures to reduce the cost of electricity and fuels approved a month ago by the Spanish government have had a positive effect on the prices of goods and services consumed by families, which has allowed to moderate the inflation that had skyrocketed in March as a consequence of the energy crisis derived from the war in Iran.

The fiscal measures to reduce the cost of electricity and fuel approved a month ago by the Spanish government have had a positive effect on the prices of goods and services consumed by families, which has allowed to moderate the inflation that had soared in March as a consequence of the energy crisis derived from the war in Iran.

It's not that anyone's breakfast was getting stuck this morning, but unemployment and inflation have shown their faces, and if the war in Iran continues, they will end up showing their whole face. The rising cost of living is a fact and prospects are for the worse, with prophecies of energy shock and disruption of international trade, including food.

The rise in fuel prices caused by the war in the Middle East sent the cost of living soaring in Catalonia and Spain in March, the first month with the war's effects, according to consumer price index (CPI, the indicator that measures the cost of living for families) data published this Tuesday by the National Statistics Institute (INE).

Sometimes, a good social response is not a good political response. Lowering VAT on fuels is one of the most common responses –and best received by citizens– when the cost of living rises, as we are experiencing due to the outbreak of the war in Iran. Its effect is immediate and visible and, for this very reason, it often becomes one of the options taken by governments. However, as Brussels has warned, which has questioned Sánchez's reduction, not only its legality but also its effects must be called into question. To what extent have these types of measures become an almost automatic response to episodes of inflation without taking into account their costs and benefits, compared to other less conspicuous, but perhaps more effective, political alternatives?It is not difficult to understand why VAT reductions are attractive. In a context like the current one, marked by rising fuel prices, reducing VAT translates directly into a lower price at the petrol station. It is an easy-to-explain measure, which reaches everyone and is immediately perceived, making it particularly tempting for governments. But this same simplicity is also its limit: not all households benefit equally, and they often end up benefiting those who consume the most. Furthermore, by artificially lowering the price, the measures reduce the incentives to adjust consumption in a context where energy prices remain high and with no clear prospects of reduction., the measures reduce the incentives to adjust consumption in a context where energy prices remain high and with no clear prospects of reduction.They are not, therefore, isolated cases. Our tax system has been accumulating a set of benefits – reduced and super-reduced VAT rates, deductions and exemptions – which, far from forming a coherent system, reduce its revenue and the system's redistributive capacity. They are mechanisms that reach many but often redistribute little, and that end up functioning more as generalized discounts than as instruments of social policy. In this context, there is growing consensus on the need to review these tax benefits and strengthen more direct and better-oriented instruments.The problem is not the lack of instruments, but how we use them. We prioritize visible measures that help diffusely, while the most effective ones often do not arrive. The challenge is not to add more aid, but to ensure that those that work are the ones that are applied. Whether they are popular or not.

The war in Iran does not impact our economy due to our economic and commercial relations with the area, but rather due to the effect on energy markets, especially oil and gas, which it has and will have in the near future. What truly weighs is not Tehran on our trade and our prices, it is Hormuz. We only need to recall the advanced CPI figure for March, 3.3%, one point higher than in February, with no change in the underlying inflation and, therefore, due to the increase in energy prices, in a context of weak growth in Europe and a not negligible slowdown of about one point in Spain and Catalonia, where the average citizen does not perceive growth improvements, per capita income does not change, and where the Treasury will be one of the beneficiaries of this higher inflation given that it does not correct tax progressivity (essentially income tax).

The US economy has been feeling the effects of the war in the Middle East and the escalating price of oil for some time now. The Consumer Price Index (CPI) in March confirms this and reveals how the impact of the conflict and the closure of the Strait of Hormuz is reaching the pockets of Americans, as it soared to 3.3%, the highest level since May 2024. This rise coincides with market forecasts, which already expected a considerable escalation compared to February's 2.4% as a consequence of high gasoline prices.

The General Council of Economists, the body that groups the colleges of economists of the State, proposes that the Spanish government adjust its income tax bracket (IRPF) to the salary increases of recent years. According to the entity's calculations, a Catalan worker with a gross annual salary of 25,000 euros would save about 252 euros annually, while for higher salaries, such as 400,000 euros, the savings would exceed 2,100 euros annually.

Until 2022, and for more than 10 years, a hamburger chain sold one of theirs for 1 euro. Today, one costs 1.85. This is one of the clearest examples of inflation. And your salary, has it increased by 85% in 3 years? This is one of the best examples of the loss of purchasing power.

Only in two of the last twenty years – in 2008, under the government of José Luis Rodríguez Zapatero (PSOE), and in 2015, under Mariano Rajoy (PP), which was actually a tax reform –, the Treasury has deflated the income tax (IRPF) rate, which means adjusting it to inflation to prevent paying more tax despite having the same or lower real income. And the last two times similar measures were taken was before the call for general elections, in March 2008, in which Zapatero was re-elected for a second term, and in December 2015, when Rajoy repeated in office. Between doing it and not doing it, there is an essential difference: from 2019 to 2024, it has meant additional revenue for the State of between 9,700 and 16,700 million, according to various studies. From the left-wing space, led by the PSOE, it is considered that this type of adjustment advocated by the PP and which applies to all incomes, especially benefits the highest ones. And, therefore, they advocate for more selective and direct measures for low or middle-income families, such as reductions and rebates on public transport and others.

The war in Iran has once again put inflation at the center of economic debate. As already happened with the invasion of Ukraine, the rise in energy prices is beginning to spread to the rest of the economy and is once again straining the cost of living. The OECD announced this week an increase in inflation of around 3% for this 2026.

No one could have imagined, when the US and Israel launched the first attacks against Iran on Saturday, February 28, that especially Washington and, specifically, US President Donald Trump, had not foreseen the consequences. The evolution of events makes it increasingly clear: there was no strategy. At least, not on the part of the US. Another thing is the government of Benjamin Netanyahu, which takes advantage of the opportunity to achieve its expansionist goals, with no regard for international law and human rights.

The conflict in the Middle East has not gone unnoticed in the update of the Bank of Spain's macroeconomic forecasts, despite the short timeframe between the outbreak of the war and the preparation of a new report. The supervisory body acknowledges that the attack by the United States and Israel on Iran and the ramifications in the region will have an impact on the growth of the Spanish economy, but above all on the evolution of prices. In fact, if the conflict becomes entrenched, the average inflation rate for 2026 could soar to 5.9% due to disruptions in the global energy market. However, the body chaired by former socialist minister José Luis Escrivá estimates that the package of fiscal measures from the Spanish government, which was validated by Congress this Thursday, will help to "cushion" the economic shock of a war that, for now, does not seem to have an end.validated by Congress will help to "cushion" the economic shock of a war that, for now, does not seem to have an end.In general terms, the Bank of Spain (BdE) forecasts that gross domestic product (GDP, the indicator used to measure the size of an economy) will grow by 2.3% in 2026, as indicated in the report published this Friday. This may seem contradictory because it represents a slight improvement compared to the December forecasts, i.e., the pre-war forecasts, when the entity forecasted that the Spanish economy would grow by 2.2% in 2026.

The war in Iran and the resulting increase in energy costs have impacted inflation in Spain. Thus, the cost of living for families this March has notably increased compared to February, as a result of the rise in prices of fuels and electricity.

The war in Iran and the resulting energy price increase have impacted inflation in Spain. Thus, the cost of living for families this March has become notably more expensive compared to February, as a result of the rise in prices of fuels and electricity.

Oil prices are rising again. Brent crude is hovering around $110 and has even touched $120. This isn't a one-off spike. It's a jump that could last for months.