2023-11-29 18:02:08
The more than nine million pensioners already know how much their benefits will increase next year: 3.8%, a little less than the 4% that the Ministry of Social Security had estimated due to the fact that inflation has moderated slightly this month. The INE published this Wednesday the advance CPI data for November, which was what was missing to know exactly how much pensions will be revalued in 2024 (in the absence of the final figure, which will be known on December 14, but which usually coincides with the advance), since they are now raised automatically with the average inflation of the last twelve months, from December to November.
Thus, the system’s average pension will increase by around 45.5 euros in January (almost 640 euros in 2024), which will increase the system’s average benefit to exceed 1,243 euros for the first time. Until now it had never even exceeded the barrier of 1,200 euros. The more than 6.3 million retirees will have something more each month, who will see their payrolls rise by 52 euros each month until they are around 1,430 euros in pay. They will thus have an extra next year of more than 730 euros that will allow them not to lose purchasing power, the great commitment established by the pension reform.
The widow’s pension will grow on average by 32 euros to 886 euros. The increase in the benefit for permanent disability will be somewhat greater, 42 euros per month, reaching almost 1,160 euros, while the orphan’s pension will grow by 18 euros and will be close to 500 euros per month and that for family members will increase from 705 euros. euros to 732 euros, 27 euros more.
Minimum and non-contributory pensions, for their part, will have a much higher increase of 3.8%, around 7% foreseeably, although the amount will not be known until the end of the year. This is because the pension reform established a greater increase for this most vulnerable group. Specifically, non-contributory contributions will rise from the current 484 euros per month to 521 euros in 2024, according to the ministry’s own estimates.
And the same thing happens with the minimum widow’s pensions, which this year will increase between 40 and 126 euros more per month as a result of the reform approved last March, which will rise to 823 euros for those over 65 without charges and 1,031 euros for widows with family responsibilities.
Cheaper fuels
The price increase gives a small respite in November by rising 3.2%, three tenths below the October rate, according to data released this Wednesday by the INE. Inflation returns to the downward path after four months of increases from the minimum it marked in June at 1.9%. The best news comes from the side of core inflation, which does not take into account energy prices or fresh food and is more difficult to moderate, since it marked its lowest rate since April 2022 at 4.5 %, seven tenths below October.
From Statistics they indicated that this moderation of the CPI is due to the lower prices of fuel and tourist packages – since November is already low season – and to a less intense rise in food prices than that experienced a year before. This compensated for electricity, which fell less than in November 2022, according to INE data.
The INE does not yet provide data broken down by food or other items, so we will have to wait until mid-December to know if the shopping basket is still close to double digits. In October, food prices continued at record levels after registering a new increase of 9.5%, with daily staples for families skyrocketing. This is the case of oil, which rose 74% in October compared to the price a year before, the largest increase in 20 years; sugar, 12% more expensive; potatoes, 16%; milk, 12% or rice, 17% above September 2022 prices.
On a monthly basis (November over October), prices fell by 0.4%, well below the increase of three tenths in the previous month. It is the first time that monthly inflation has been at a negative rate since last January.
Sources from the Ministry of Economy recalled that with this November inflation data, salaries “continue to gain purchasing power” and Spanish companies “gain competitiveness” by increasing their market share, “even in the difficult international context,” they explained in a statement in which made reference to the positive economic policy of the Government.
A fiscal aid policy to alleviate the effects of the price increase that they have decided to extend beyond December 31 for some items. This is the case of the VAT reduction on certain foods, which will be extended until June 2024, as announced by President Pedro Sánchez in his investiture speech. He also announced that public transportation will continue to be free for young people, minors and the unemployed. What is unknown is what will happen to the VAT on gas and electricity, reduced until December 31.
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