Spain | Join the gym, quit smoking and help to bring inflation down

Summary

Christmas is approaching and, as is customary every year, some of us will be thinking about what resolutions to make for the new financial year. For the second year in a row, we should include something or other to bring down inflation.

Key points

• Key points:
• First, because while we have behaved fairly well throughout 2022, in certain parts of Europe people would be more than happy to receive a lump of coal at the bottom of their stockings.
• Second, because, as we have been seeing throughout the current episode of upward price pressures from abroad, a large part of the solution to inflation lies in the decisions that we ourselves continue to take as economic agents in our own country.
• The third reason is because, as with any new year resolution, we need to be aware that there is a risk of us failing, and not only due to certain adverse events beyond our control, but also from our own negligence and procrastination.
• Early 2023 will be key, as there will likely be further updates on prices, wages and income. At that time, we really do need to remember that passing on to others the individual cost overruns we have already incurred from rising inflation is not particularly conducive to the aim of reducing future inflation.

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