CEOE assures that companies still do not pass on all the increase in costs in final prices

It forecasts that inflation will remain high in the short term, although it will continue to moderate

MADRID, 14 Oct. (EUROPA PRESS) -

The Spanish Confederation of Business Organizations (CEOE) has defended this Friday, after knowing the inflation data for September, the effort of the productive fabric, in a situation that is still "very delicate" for many sectors, so as not to affect all the increase in costs in their final prices of goods and services.

In September, inflation slowed down to 8.9%, after the 10.5% reached in August, thanks to the lower rise in energy prices. However, energy products continue to be the main inflationary element, along with food, both unprocessed and processed, due to the increase in raw materials in international markets.

In the case of the core CPI, CEOE points out that it decreases two tenths, placing its variation rate at 6.2% year-on-year in September, quite far from the general CPI, which would be reflecting that the companies continue not to pass on all the increase in costs in final prices.

It must be taken into account that a large part of the price increase observed in many components of the CPI is due to factors external to the Spanish economy, such as the consequences of the armed conflict and supply problems, while the weakness of the euro is a additional factor that makes imported goods more expensive, according to the employer's association.

In addition, the prolongation of the war in Ukraine and the economic sanctions imposed on Russia may continue to condition the evolution of the prices of some raw materials, among others, gas, oil, cereals or oils, which in turn affect the composition of the price of many other products.

For all these reasons, the employers forecast that inflation will remain high in the short term, although it will continue to moderate. As for oil, the CEOE estimates that it will continue to push up inflation, although to a lesser extent than in previous months.

In this context, the organization has insisted that it is particularly relevant to avoid a scenario in which price and wage increases feed back on each other, so as not to produce second-round effects that lead to an inflationary spiral.