Lower CPI and its effect on the rental price of the property
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The CPI in March 2023 fell from 6.0% to 3.3%, that is a drop of almost three points. It is the strongest drop that the IPC has had since it began its rise last year 2022.
This fall suggests that inflation will continue to fall, which puts its eyes on the Government, which has decided to give the green light to the new Housing Law, which contemplates a limit of 3% of rent increases by 2024 .
Let’s see how this drop in the CPI can affect the rental measures in this year 2023, especially if you own a rented apartment.
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The CPI and the rental price limit in 2023
If you are the owner of an apartment for rent, surely you already know about the 2% limit on the increase in the price of rents.
This temporary measure has been in force since 2022, in Royal Decree-Law 20/2022, by which the rental price is not updated with the 2023 CPI, but with the Competitiveness Guarantee Index (IGC), which has a cap of 2%.
One of the reasons for pushing this cap is that in July 2022 the CPI reached 10.8%. Therefore, the government decided to take this temporary measure to prevent rental prices from skyrocketing even more.
Finally the government decided to raise the rent limit to 3% in 2024 in the new Housing Law, but with a CPI of 3.3% indicating a downward trend, this measure could become obsolete if it continues.
CPI in Spain and Europe in 2023
!! Congratulations!! Spain, with a CPI of 3.3% in March 2023, ranks third behind Germany with 2.4% and Switzerland with 3.3%.
Spain is ahead of countries like Luxembourg with 3.6%, Canada with 5.2%, and Italy with 7.7%.
As indicated by the National Statistics Institute (INE) in its monthly report. Where the CPI has presented a notable drop was in electricity.
