Félix Bolaños and the gap between prices and wages in Spain
Spanish minister Bolaños claims prices are stable while wages have risen 23% since 2018. Supermarket data tells a different story.
English · Original discussion in Spanish · Published
The CPI the minister doesn't see
Spanish minister Félix Bolaños declared that prices remain stable, citing a cumulative wage increase of 23% since 2018. However, the figure clashes with the reality of the shopping basket: cumulative food inflation exceeds 30% over the same period, and the overall CPI does not reflect the hit to basic products. The gap between the official narrative and everyday experience fuels skepticism.
The trick of cumulative figures versus year-on-year
Bolaños compared eight years of wage growth with the latest year-on-year price figure, a statistical maneuver that downplays the loss of purchasing power. While nominal wages grew 23% since 2018, cumulative inflation over the same period is around 20%, but the inflation peak of 2022-2023 (with rates of 10% in some months) eroded families' savings. The minister ignores the fact that the wage increase has been concentrated in rises of the SMI (Spain's minimum wage) and collective agreements, not in average incomes.
The shopping basket doesn't forgive
Prices of foods such as olive oil, milk, and eggs have risen between 40% and 60% since 2021, far above the average wage increase. Offers and promotions have disappeared, and consumers notice that the same money buys less. The stability Bolaños proclaims is, at best, an average that never reaches households.
The question left hanging is why the Government insists on a narrative that clashes with the evidence at the supermarket. Perhaps because aggregate data always hides the inequalities paid for by the middle class.
Related debates in the forum
Spanish minister Félix Bolaños declared that prices remain stable, citing a cumulative wage increase of 23% since 2018. However, the figure clashes with the reality of the shopping basket: cumulative food inflation exceeds 30% over the same period, and the overall CPI does not reflect the hit to basic products. The gap between the official narrative and everyday experience fuels skepticism.
The trick of cumulative figures versus year-on-year
Bolaños compared eight years of wage growth with the latest year-on-year price figure, a statistical maneuver that downplays the loss of purchasing power. While nominal wages grew 23% since 2018, cumulative inflation over the same period is around 20%, but the inflation peak of 2022-2023 (with rates of 10% in some months) eroded families' savings. The minister ignores the fact that the wage increase has been concentrated in rises of the SMI (Spain's minimum wage) and collective agreements, not in average incomes.
The shopping basket doesn't forgive
Prices of foods such as olive oil, milk, and eggs have risen between 40% and 60% since 2021, far above the average wage increase. Offers and promotions have disappeared, and consumers notice that the same money buys less. The stability Bolaños proclaims is, at best, an average that never reaches households.
The question left hanging is why the Government insists on a narrative that clashes with the evidence at the supermarket. Perhaps because aggregate data always hides the inequalities paid for by the middle class.
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (52 replies).
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