How's that Iberian Exception working out for Spain and Portugal?

A 2% inflation rate sounds good for peoples lives right about now. What happens next for their economy after these measures were implemented to get inflation under control?


Why is Spain’s inflation so much lower than the UK’s? Because it stood up to business

But there was huge inequality in who was able to “pass the parcel” on inflation. The Bank of England recently highlighted that wage growth was “concentrated in higher-paying sectors such as financial and business services” while “pay growth in lower-paid sectors like wholesaling, retailing, hotels and restaurants had been broadly flat”.

Moreover, while there has been an all-present focus on wages, there has been too little attention paid to the role of businesses in keeping price pressures up by “passing the parcel”.

In forthcoming IPPR analysis we show that a large chunk of businesses have either maintained or increased their profit margins in 2022. At the same time, many landlords were able to raise their rents in line with inflation – something that the temporary rent control policy in Spain was able to contain. If the costs of inflation were fairly shared, businesses and landlords would also take a hit and absorb some of the costs, rather than workers taking most of the hit.

The Iberian Exception and Its Impact


Don't even think about it round here, you scofflaws.