All posts by Luis Moreno

Moreno Luis - is a business and economics reporter based in Barcelona. Prior to joining the BNE24 he was economics editor of the BBC Spaine and worked as an economics and political reporter for Murcia Tuday.

139 Hispanic-Palestinians evacuated from the Gaza Strip arrive in Spain

The Spanish operation to remove Spanish-Palestinians trapped in the Gaza Strip has concluded. This Thursday, 139 people landed at the Torrejón de Ardoz airport after spending more than a month in the south of the Palestinian enclave waiting to be evacuated.. On Monday the doors of the Rafah crossing opened for the first Spaniards with dual nationality. Three days later they are already in Spain.

85 Spanish-Palestinians and 54 family members have traveled aboard the Airbus 330 of the Air Force. The group is made up of 67 minors, three of them less than one year old, 39 women and 33 men. Although 143 people were evacuated from Gaza, four of them have decided to stay in the Egyptian capital as they have family there.

They were received on the steps of the plane by the Minister of Defense, Margarita Robles, the Minister of Foreign Affairs, José Manuel Albares, and the Chief of the Defense Staff, Teodoro Esteban López. “This was a particularly complex evacuation, because it required authorizations from Israel and Egypt,” said Albares, who wanted to emphasize Qatar's role in the evacuation.. The Foreign Minister has acknowledged that the new arrivals have been able to tell them about the horror they have experienced in Gaza: “The situation there is terrible and we do not forget all the Palestinian civilians who continue to live through the unbearable horror.”

For her part, the Minister of Defense has also stressed “how difficult the evacuation has been due to the circumstances in the area.”. Robles stated that the arrival was “emotional”, especially when several of them “thanked them for what they are doing.”. The minister added that Spain is “committed to just causes” and that the new arrivals “will find here a new homeland in which to live.”

The departure of these Spaniards from Gaza occurred this week after several failed attempts. Initially the evacuation was scheduled for the first days of November, but problems arising from the conflict itself delayed it.. This Monday the Spanish Government managed to agree to the departure of the first group of 40 Spanish-Palestinians with their families, who were joined by another 74 on Tuesday and 29 more on Wednesday.

Although there is still another group of 45 people within the Strip who registered on the lists at the last moment, Foreign Affairs has concluded this first phase of the evacuation. The departure of the rest is being processed and the date on which they could arrive in Spain is still unknown.

Personnel from the 45th group in the Air Force, the air deployment support squadron, the Medical Evacuation Unit and the Combat Command have participated in the operation to bring this 139 people.

Hamas assures that the Al Shifa hospital in Gaza is completely cut off after Israeli raid

The Al Shifa hospital, the most important in the Gaza Strip, has been completely cut off, the Ministry of Health of the Palestinian enclave reported this Thursday, a day after the Israeli Army raided the medical center, when it still housed about 3,000 civilians. “Communication has been interrupted since this morning with all officials, doctors and those present at Al Shifa hospital,” the Ministry of Health, controlled by the Islamist movement Hamas, which has de facto governed the Gaza Strip since 2007, said in a statement.

The Israeli Army announced on Wednesday the start of a “precise and selective” operation inside the Al Shifa hospital, where it says it has found “a command center, weapons and technological assets” of Hamas, and this Thursday a military spokesperson confirmed to EFE that His troops “continue to search the hospital.”

As of Wednesday, some 3,000 people, including patients – including 36 newborns -, medical personnel and displaced people, were staying in the hospital despite the fact that it had already run out of electricity, drinking water, food and medicine. Some 170 unrefrigerated corpses further threatened the health situation there.

“The occupation forces destroyed medical equipment during their assault on the Al Shifa medical complex and razed the hospital courtyards,” denounced the Gaza Ministry of Health, which released a video in which medical personnel are seen transporting patients on stretchers through of a cloud of dust inside the hospital, whose facilities showed considerable damage.

For its part, the official Palestinian news agency, Wafa, reported earlier that “bulldozers and occupation vehicles broke into the complex from its southern entrance, completely leveling the entrance and destroying all vehicles in the courtyards.”

Israeli soldiers “have placed facial recognition cameras and electronic gates in the courtyard of the medical complex, forced displaced people to remove their clothes, detained and interrogated doctors, patients and displaced people,” he added, citing Palestinian sources on the scene.

This morning, the Gaza Health Ministry said that “the Israeli occupation is waging a war against hospitals, especially in Gaza City and the northern Strip, including shelling and preventing wounded and displaced people from access medical care, water and food.

Furthermore, he described the Israeli incursion in Al Shifa as a “war crime” and denounced that, during the night, “the occupation forces were entrenched in the underground floors of the Shifa medical complex, taking medical personnel and displaced people as human shields.” “.

Israeli forces have carried out bombing raids that “hit patient rooms”, attacked the coronary artery care unit with a tank shell, “deliberately destroyed radiology machines”, rendering the CT machine and MRI, according to the ministry.

Denying that the hospital functions as a command and control center for Hamas, the Health Ministry assured that Israeli soldiers detained the only electrical generator technician and the only oxygen station technician present in Al Shifa.

Israel declared war on Hamas on October 7 after a massive attack by the Islamist group that included the launching of thousands of rockets and the infiltration into Israeli territory of some 3,000 militiamen who massacred some 1,400 people and kidnapped another 240.

Since then, Israel's air, naval and ground forces have relentlessly attacked the Gaza Strip, leaving more than 11,500 dead and almost 30,000 injured, in addition to 3,600 missing under the rubble and some 1.7 million Gazans displaced, more than two thirds of the total population.

Brussels predicts that Spain will be the large EU economy that grows the most until 2025, but it will fail to comply with fiscal rules as early as 2024

The European Commission expects that Spain will be, of the four large economies of the eurozone, the one that grows the fastest until 2025. Brussels calculations predict that the Spanish economy will advance at a rate of 2.4% this year, will slow down to 1.7% next year and will regain some pace again in 2025, a year in which the GDP would rebound by 2%.

The EU forecasts place the country above the three great powers of the community bloc: Germany, France and Italy in this order. The Commission's analysts point out that none of these three countries will manage to grow above 1.5% in the next two years. In fact, in the case of Germany, a small contraction of the economy is expected this year.

The Commission believes that household consumption will be the driving force behind the economy next year. As inflation reduces – it is expected to moderate from 3.6% this year to 3.4% in 2024 – families should recover some of the purchasing power lost during the crisis. In addition, it is expected that employment will continue to be created—although at a slower rate than until now—which will also contribute to boosting consumption.. The Commission expects the unemployment rate to close at 12.1% this year and to reduce to 11.1% within two years.

European recovery funds will also play a key role, which should be able to sustain investment in a context in which financing costs will continue to be high due to the high interest rates maintained by the European Central Bank.. After 2024 with more moderate growth, the economy would accelerate slightly in 2025 thanks to the entry into the scene of loans from European funds, which will begin to be granted from that year, as planned in the calendar.

However, the outlook is by no means free of obstacles.. The Commission warns that the high interest rates set by the ECB can curb demand. Especially in light of the high levels of public and private debt that exist in Spain, although it has been reducing.

GDP growth forecasts for the four large euro economies. Peter's Henar

Structural deficit above 3%

The other side of the coin is public finances. Brussels believes that Spain will not be able to comply with the deficit limits, even by completely eliminating anti-crisis measures when they decline in December. The Commission draws a panorama in which Spain has settled with a structural deficit – which always remains, regardless of whether the moment of the economic cycle is good or bad – above 3% of GDP.

The Government has committed to reducing the imbalance in public accounts to 3% next year. However, the Commission's calculations indicate that, barring surprise, an additional structural adjustment will have to be undertaken to withdraw the measures.. Regarding debt, the European Commission's forecast is that it will close at 107.5% of GDP this year, but then it will stagnate at 106.5% in the medium term.

With the return of European fiscal discipline expected next year, Spain is exposed to entering the EU's excessive deficit procedure again if it does not fulfill its commitment to reduce the imbalance. A regime that may end up involving significant economic sanctions and complying with the fiscal recommendations indicated by the EU. In any case, the Commission expects that next year there will be a dozen countries that do not meet the deficit objectives. Among them, France and Italy, which will deviate above 4%.

Debt forgiveness for the CCAA, increasing the youth rent bonus, free public transportation… Sánchez's economic promises

Pedro Sánchez has taken advantage of the first day of the investiture session to announce a battery of commitments in economic matters if he manages to revalidate the presidency. Among other measures, the now acting president has promised to forgive part of the regional debt, increase the youth rental bonus or make public transportation free for young people, minors and the unemployed.

In addition, the candidate for the investiture has announced that he will extend the VAT reduction on food until June 2024, that he will expand the scope of the mortgage relief measures to households with incomes of up to 38,000 euros per year or that he will raise the SMI every year. years so that it remains at 60% of the average salary.

Given the foreseeable impact on public accounts that an economic package such as the one proposed by the acting president would have, Sánchez will burden the fiscal costs on the richest.. “The rich, sorry, have to pay more taxes. As long as we govern, they will pay more than now,” Sánchez warned from the tribune of the Congress of Deputies.

During his first intervention, Sánchez has outlined eight priorities for a future Government, many of them with a marked economic content.. Among the newest, the extension of the VAT reduction on certain essential foods until June 2024 stands out. This measure was introduced for the first time in January 2023 and has been in force since then.. With food still 9.5% more expensive than last year, the socialist leader has promised to extend the tax reduction also until the middle of next year when the pressure on the price of the shopping basket is expected to ease.

However, Sánchez has not made any mention of a possible extension of the tax reductions on the electricity and gas bill, which if nothing is done to remedy it, will decline on December 31.. The higher cost of this measure and the repeated warnings from Brussels not to extend energy support make it difficult to maintain them.

The acting president has also committed to making public transportation free for young people, minors and the unemployed.. A measure that is already included in the budget planning that the acting Government sent to Brussels in October, but only with regard to the state network (mainly commuter and medium-distance trains).. However, the bulk of the public transportation network is in the hands of autonomous communities and local entities, largely in the hands of the PP.. Without your support, Sánchez's promise will be difficult to achieve.

In terms of housing, the candidate for investiture has committed to increasing the amount of the youth rental bonus, currently set at 250 euros per month.. The president has not gone into more details, but compliance with this measure will also be conditioned by the disposition of the regional governments, which are responsible for granting aid and setting income limits.. Furthermore, the acting president has recovered the promises he already made during the electoral campaign.. Among the most notable, building 183,000 public homes for affordable rental, or 20% mortgage guarantees for young people so that they can access the purchase of a home.

For those who already have a home and have found it difficult to pay for it, Sánchez has promised to facilitate access to mortgage relief measures for middle-class families.. A measure that was already reflected in the government agreement between PSOE and Sumar. To achieve this, it has committed to expanding the income limit allowed to families of up to 38,000 euros of annual income (the current limit is 29,400 euros).. This mortgage relief is reflected in two codes of good practices that allow the most distressed households to access grace periods in the payment of the principal of their debt and extensions in the life of the loans.

In addition, the president has reiterated already known commitments such as raising the minimum wage every year so that it remains at 60% of the average salary; the reduction of the maximum legal working day from 40 to 37.5 hours per week; achieve full employment; reinforce the minimum vital income and simplify access requirements so that more households can benefit or continue revaluing pensions in accordance with the CPI. He has also proposed the creation of a family farming law to support small farmers, reinforce food aid and scholarships, fewer university fees, more funding for research or better working conditions for scientists.

Forgiveness of regional debt

At the level of public finances, the president has committed to a “new financing model” that guarantees the resources of the autonomous communities. Sánchez has pointed out that during the years of the crisis the “cuts in the welfare state” left many communities without resources and forced them into debt.

For this reason, together with the reform of the financing system, the socialist leader has promised to “assume part of the debt of the autonomous communities contracted during the PP stage”. The acting president has indicated that the measure will be “applicable to all autonomous communities regardless of political color” and whether or not they are covered by the Autonomous Liquidity Fund (FLA).

In principle, this would expand the range of debt relief to the entire autonomous spectrum (including Madrid, the Basque Country and Navarra), although the conditions that would apply to each community are still unknown.. For the moment, the PSOE has agreed to forgive 20% of the regional debt in the hands of the State for Catalonia and Galicia, but this percentage does not necessarily have to be applicable to the rest.

Regarding the fiscal measures that a new socialist Government would adopt, Sánchez has limited himself to pointing out that he is “committed to the public deficit” and that he will broaden the tax bases, seek to bring about the underground economy, expand the progressivity of personal income tax and promote the minimum of 15 % in corporate tax on accounting profit. Nor has he specified what will happen with the tax on the rich, on banks or on energy companies, which in principle are designed to be temporary. In any case, Sánchez has made it clear that the tax pressure for the highest incomes will rise again if he repeats in Moncloa.

Another 29 Spaniards leave Gaza and complete the evacuation of 143 people

A third group of 29 Spanish-Palestinians left Gaza this Wednesday through the Rafah crossing towards Egypt, completing the exit operation for the 143 registered at the Consulate who had expressed their desire to be evacuated and for whom authorization had been processed.

This was indicated by diplomatic sources, who added that all of them will concentrate in Cairo from where they will fly to Madrid in the next few hours.

Last Monday, a total of forty Spanish-Palestinian or their relatives left Gaza, and yesterday, Tuesday, another 74 did so.

The departure of these groups has occurred with prior authorization from Israel and with the approval of Egypt, since both countries must give their green light to the departure of these people through the Rafah crossing.

Xi, to Biden after arriving in the US: "The Earth is big enough for both countries to succeed"

The presidents of the United States, Joe Biden, and of China, Xi Jinping, began their meeting near San Francisco this Wednesday with a cordial handshake while they posed smiling in front of the cameras that sought to immortalize the moment.. Before the meeting, Xi assured his counterpart through television cameras that “planet Earth is big enough for the two countries to succeed” as powers.

The meeting, which began after 11:15 local time (8:15 p.m. Spanish peninsular time), takes place in a mansion known as “Filoli”, which served as the image for the popular television series Dinasty (Dynasty) and located in the town of Woodside, about 40 kilometers from downtown San Francisco.

Biden was waiting at the gates of the mansion for Xi, who arrived riding in a black car. They both stopped for a moment before entering the home to wave to the media, shake hands and pose. “We have not always agreed, which is not a surprise to anyone, but our meetings have always been frank, direct and useful,” said the US president at the beginning of the meeting with Xi, highlighting the fact that there is direct contact between the two powers.

This face to face on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit will be the first in a year between the two leaders, after the one they held for about three hours in November 2022 in Bali (Indonesia) during the G20 summit.

Biden attends the meeting with the aim of resuming communications between the Armed Forces of the two countries and getting China to take measures to control the departure from its territory of chemicals used to manufacture fentanyl, a powerful opioid that is charged the lives of almost 200 Americans a day.

For his part, Xi will want to extract from Biden a commitment that the US will not intervene in the January presidential elections in Taiwan and will not support an eventual declaration of independence for the island, which China claims as part of its territory and which Washington could defend. in case of armed conflict.

Neither side anticipates major agreements, but they do seek to reestablish lines of communication in different areas to prevent competition between the two powers from leading to open conflict.

Months of mistrust

The two leaders have not had any type of formal communication, not even a phone call, since the meeting in Bali. That face to face ended on a positive note and was then perceived as a new chapter in bilateral relations after the tensions during Donald Trump's mandate (2017-2021), when both nations engaged in a trade war with mutual imposition of tariffs.

However, the harmony was short-lived and relations soured again after the Biden Administration shot down an alleged Chinese “spy” balloon that flew over the United States at the beginning of the year.

After that incident, there were months of mistrust, but in June a complicated diplomatic dance began to revitalize bilateral relations with the trip to Beijing of several members of the US Government, including the visit in June of the US Secretary of State, Antony Blinken. In addition, members of the Chinese Government traveled to the US in recent months, such as Chinese Foreign Minister Wang Yi, who met with Biden at the end of October.

They are looking for a 30-year-old tourist who fell into the sea from a cruise ship

The United States Coast Guard reported this Wednesday that it is searching for a 30-year-old crew member of the MSC Seascape cruise ship who is believed to have fallen overboard near the municipality of Aguadilla, in western Puerto Rico.

According to the statement released by the authorities, the man fell overboard from a height of approximately 9.7 meters. According to the Coast Guard, the crew member was wearing a white shirt and red shorts.

The Coast Guard received the alert at nine pm on Tuesday, when the cruise ship was heading from San Juan to Puerto Plata, in the Dominican Republic. The cruise ship reported that it launched a life preserver, three lifebuoys and a rescue boat to search for the tourist.

The security guards coordinated the takeoff of a Coast Guard helicopter and diverted Coast Guard personnel to the scene. Once on scene, the Coast Guard crew deployed a self-locating data buoy that measures ocean currents to assist in the search.

At approximately 7:30 a.m. Wednesday morning, the Coast Guard crew reported locating the three lifebuoys that were launched from the cruise ship.

Israel attacks Al Shifa hospital after days of siege and orders evacuation of areas in southern Gaza

“Remember when they told us we wouldn't invade Gaza? We did.”. They told us we would not reach Gaza City. We arrived. They told us that we would not enter Al Shifa. We go in”. After several days of siege at the Al Shifa hospital, Israeli troops are already inside the facilities. This has been confirmed by the Israeli Prime Minister himself, Benjamin Netanyahu, who wanted to remind from a training base in Zikim, near the Gaza border, that his Army is fulfilling its promises.. The siege on Gaza is getting tighter every day and this Wednesday Israel asked to evacuate some communities in the south of the Strip; where hundreds of thousands of people take refuge.

According to Tel Aviv, Israeli soldiers carried out a “selective operation” inside the hospital.. According to Daniel Hagari, spokesman for the Israeli Army, the troops “found explosive devices and terrorist cells” and confronted Hamas members whom they opened to death.. During the days of siege, clashes had occurred in the vicinity of the health center, since, according to Israel, the Islamist group has a command center in the hospital. At the moment they have only acknowledged having found weapons, although they assure that in the next few hours they will bring to light evidence that will demonstrate their use by Hamas, including a network of underground tunnels.

For its part, Hamas denies having used the hospital and claims that this narrative “backed by the White House” has led to “a new massacre against civilians.” The press office of the Gaza Government, controlled by the Islamist group, has assured that Israeli troops entered with tanks, explosives, drones and heavily armed soldiers, “shooting inside”, which constitutes a “war crime.”. The general director of Health hospitals, Mohamed Zaqout, has indicated that the soldiers interrogated several hospital doctors “for hours” in side rooms and opened fire on those who left the complex.

The information coming out of the hospital is scarce and Israel's block on the entry of international media complicates verification from the field.. Palestinian media indicate that at least 200 people would be detained, including medical personnel and evacuees. Furthermore, the director of the Al Shifa medical complex, Mohamed Abu Salmiya, states that the Israeli Army is deployed in several buildings on the compound, including the dialysis department; and that medical staff cannot access the pharmacy to supply medications to patients, since “the occupation shoots at everything that moves.”

Al Shifa hospital ran out of electricity, drinking water and food days ago. It is estimated that there are about 2,000 displaced people and 650 patients, including 22 in intensive care and 36 premature babies.. Precisely this Wednesday morning, the Israeli Army shared photographs and videos delivering “incubators, baby food and medical supplies”. Likewise, its broadcast channels have claimed to have facilitated hospital evacuations.. Something that Hamas denies.

They ask to evacuate areas of the south of the Strip

While this is happening in the capital of Gaza, in the south about 2 million people are taking refuge from the ground offensive. Many of them had moved there at the request of Israel. This has not prevented daily Israeli bombings in this area; and this Wednesday the Jewish State has requested for the first time since the war began the evacuation of some communities in the south.

“For their safety, they must immediately evacuate their place of residence and go to known shelters,” the Army urged in leaflets dropped by air addressed to the eastern communities of the Khan Younis governorate: Al Qarara, Khuzaa, Bani Suheila and Abasan.

In one of the most densely populated places in the world, finding shelter has become almost impossible.. In addition, Palestinians living in Gaza cannot leave the Strip, since the borders are closed.. The only ones who have managed to escape from the enclave have been foreigners or people with dual nationality.. In fact, this Wednesday the third group of Spanish-Palestinians left through the Rafah crossing towards Egypt, made up of 29 people.. With these Spaniards on their way to Cairo, the Ministry of Foreign Affairs would have considered the operation completed. In total there have been 143 evacuees from Gaza.

A 10-point plan to stop the conflict

The Israeli bombings – which began on October 7 after a massive attack by Hamas that left around 1,400 Israelis dead and 240 kidnapped – have caused more than 11,300 deaths and 29,200 injuries, according to the Islamist organization itself.. The humanitarian situation has become critical and the head of United Nations Humanitarian Affairs, Martin Griffiths, presented this Wednesday a ten-point plan to put an end to what he considers “carnage.”

Some of the points of the document are to facilitate the efforts of aid agencies to deliver a continuous flow of aid convoys safely; open additional border crossings for the entry of commercial and aided trucks, including Kerem Shalom; and allow the UN, other humanitarian organizations and public and private entities to access fuel in sufficient quantities to deliver aid and provide basic services.

Likewise, Griffiths has called for “expanding the number of safe shelters for displaced people in schools and other public facilities in Gaza, as well as ensuring that they are safe areas during hostilities.” Finally, he called for “a humanitarian ceasefire to allow basic services and trade to restart.”

In this sense, the UN Security Council approved this Wednesday for the first time a resolution to establish pauses and humanitarian corridors.. The resolution had 12 votes in favor and three abstentions (United States, United Kingdom and Russia). The resolution calls for these pauses to last a “sufficient number of days” to allow organizations to enter with “a sufficient and unimpeded supply of essential goods and services.”. The Israeli ambassador to the United Nations, Gilad Erdan, has called the decision “regrettable” and has accused the UN of being “disconnected from reality”. “Hamas will not even read the resolution, much less abide by it,” he said.

One dead and seven injured after a Russian missile attack in the Zaporizhia region

One person was killed and seven others were injured this Wednesday in a Russian missile attack against an inhabited area in the Zaporizhzhia region, located in southeastern Ukraine.

“Between 9:50 and 10:18, Russian terrorists launched three missile attacks against civilian infrastructure in a residential area of the Zaporizhzhia district.. As a result, one person has died and seven others have been injured,” wrote the head of the military administration of the area, Yuri Malashko, on his Telegram channel.

The Russian missiles and the shock wave caused by their explosion have damaged several homes, two vehicles and the buildings of a farm in the area, as explained by this same source.

The province of Zaporizhia is currently partially occupied by Russia and is the scene of some of the bloodiest battles on the entire front line.. Towns and cities in the region are the target of constant bombing.

Food inflation falls below 10% for the first time in 18 months

Shopping basket inflation resumed its downward path in October and fell to 9.5%, which is the first time that this indicator has fallen below the double-digit barrier in 20 months.. This has been confirmed by the National Institute of Statistics (INE), which published this Tuesday the definitive Consumer Price Index (CPI) figures for the month of October.

Food inflation had barely moved since last June, when it stood at 10.3%. After a slight rebound registered in July, the increase in prices in the shopping basket had stagnated at around 10.5%. A downward resistance motivated in part by the sharp increase in the price of olive oil, which, however, has continued to rise in price and now costs twice as much as it did just two years ago.

Of the 55 food categories for which the INE monitors prices, inflation has been reduced in 40 products, has risen in 13 and has remained stable in two others.. The most striking slowdown in the price increase is that registered by sugar, which has gone from an inflation of 40.5% in September to 12.3% in October. The decline is motivated by the strong 'step effect' that occurred in October last year, when inflation when prices shot up by 42.8%.

Although it seems that inflation continues to ease, there are still 23 foods with price increases of more than 10% year-on-year. The most notable is olive oil, which costs 73.5% more today than a year ago. Confectionery products appear far behind, with a price increase of 17%; rice (16.6%); juices (16.1%); potatoes (15.9%); jams; jams and honey (15.9%); cereals (15.1%); pork (13.8%); soft drinks (11.8%); whole milk (11.6%); baby food (11.2%) or fish (10.3%) to name the most notable.

Evolution of the price of Henar de Pedro olive oil
Annual variation of the CPI in October Henar de Pedro

On the opposite side of the spectrum there are already foods with price increases that can be considered normal. We are talking, for example, about flour (0.5%), pasta (0.8%), frozen seafood (1.3%) or poultry (2.3%).. The rest of the edible oils deserve special mention, the price of which in October was 29.5% lower than that of a year ago.

General inflation remains stable

In addition, the statistical institute has confirmed that the general CPI index remained stable at 3.5%. A figure that, when the first advance was known at the end of last month, was a positive surprise.. For its part, the underlying indicator – the one that deducts energy and unprocessed food prices from the calculation – fell to 5.2%, its lowest level since June 2022.

The Ministry of Economic Affairs makes a positive reading of the data and points out that it has been the economic policy measures adopted by the Government that have allowed Spain to maintain “one of the lowest inflation rates and greatest economic growth in the euro zone.”

Food has not been the only force that has pulled down inflation. In fact, the relief in transport prices has been the main counterweight to the electricity bill, which, although still cheaper than last year, increasingly hurts the general index as the step effect disappears.

Transportation inflation fell to 1.4% in October from 3.8% in September. A decrease driven by the slowdown in fuel prices, which have gone from costing 6.5% more than last year in September to 1.2% last month. The evolution of this component will be one of the keys that the European Central Bank (ECB) will keep in mind when it decides whether or not to raise interest rates again next December.

The other side of the coin, the one that is preventing inflation from falling further and will continue to make it difficult in the coming months, is the electricity bill.. The price of electricity was still 7.7% below the level recorded last year in October. However, the lower year-on-year price of electricity is decreasing month by month as the favorable effect of the sharp price drops experienced at this time last year fades.

To this factor we must add that the energy support measures introduced by the Government will end in December of this year if they are not extended.. Currently, the taxation of the electricity bill is practically at the legal minimum thanks to tax reductions. The Government has not yet clarified what it intends to do with the package of support measures and is not closing the door on extending some of the measures or introducing new ones.. However, it will be very difficult to maintain the anti-crisis package as it currently stands if it wants to comply with the European Union's fiscal rules, which will be active again in 2024.