COVID-19 and its impact on inflation in Spain

COVID-19 and its impact on inflation in Spain

Fecha: enero 2021

María Jesús Fernández

Inflation, COVID-19

SEFO, Spanish and International Economic & Financial Outlook, V. 10 N.º 1 (January 2021)

Although Spain recorded an inflation rate of -0.3% in 2020, the only clear-cut case of crisis induced deflation was in energy products, with subcategories in the services sector exhibiting both inflationary and disinflationary trends. Over the near-term, it is likely that inflation will bounce back due to rising vaccination rates, the lifting of social distancing measures, and a decrease in the historically high savings rate.

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