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Will Rising Production Costs Generate an Inflationary Spiral in Spain?

20 mins.
10 NOVEMBER, 2021
análisis macroeconómico
ANALYSTS:
Leopoldo Torralba
Ignacio de la Torre
Spain AER España AER Personal
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Companies and individuals are coping with energy costs soaring at a rate not seen since the 1970s, in a period which is not at all comparable to today. Thus, uncertainty and concern are surging. The issue here is whether this situation could fully derail economic recovery, and even prompt a major crisis.
What is going on with production costs and inflation?
Are they really a reason for concern?
Who are absorbing the bulk of the increases in energy and intermediate goods prices?
Do we stick by our central thesis?

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