The article discusses the impact of inflation and government policies under Pedro Sánchez on the real wages and purchasing power of Spaniards from 2018 to 2024. A recent study found that while nominal wages increased by about 22%, when considering inflation, the actual increase in purchasing power was only about 2%, or roughly 663 euros over the six years.
The inflation rate has risen significantly during Sánchez’s term, particularly since 2021, with overall inflation reaching 21.3% and food prices increasing by 37.9%. This inflation surge is much higher compared to the previous government led by Mariano Rajoy, where inflation was about 7.2%.
Moreover, the government’s choice not to adjust tax brackets for inflation has further reduced people’s real income, effectively costing the average taxpayer over 2,000 euros. This means that instead of enjoying an increase in wages, most workers have seen their buying power decrease due to high inflation and tax policies, leading to a significant financial burden.
Finally, the study suggests that the average income of Spaniards relative to the European average has slightly declined since 2018, indicating that economic conditions have not improved in terms of purchasing power or overall wealth.
