With April inflation at 3.2%, “wages in Spain are only enough for survival,” explains USO union

inflation board

The April CPI continues to reflect the effects of the war in Iran, with a 3.2 increase. Transport is the epicenter of these rises, driven by the impact of fuel prices, which saw an increase of 6.5. Household utilities, rising by 1.9, helped moderate the overall spike alongside tourist packages.

Consumers in Madrid are suffering particularly hard, with inflation nearing 4%, followed by the regions of Castilla-La Mancha and Castilla y León.

Looking at what rose most this month, the focus returns to essentials: vegetables and legumes increased by nearly 3%, fuels by nearly 20%, and clothing and footwear also saw hikes. These increases are occurring on top of categories that were already hyper-inflated, such as food.

“What does it matter if tourist packages get cheaper if the concern is not being able to afford the weekly groceries?” explains Joaquín Pérez, Secretary General of USO.

USO recently presented two studies—one statistical and one demographic—showing a clear disconnect between the CPI and daily reality. “The numbers say it when they are broken down, and the sentiment on the street confirms it. Today, wages are not enough. They aren’t enough for the basics: they aren’t enough to eat as well as five years ago, they aren’t enough to keep the home warm or cool, and they aren’t enough to consider a little leisure. They are enough for survival—and sometimes, only with great effort and debt,” denounces the Secretary General of USO.

For this reason, Joaquín Pérez reiterates his union’s demand: “The mandatory and automatic salary review clause linked to the CPI must return to collective agreements. Furthermore, there should be a CPI sub-index for basic products—the things we truly need every month, such as food, transport, and housing. Only then can we guarantee that we stop losing purchasing power.”

About the Author

The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.