Economics
A Trendy Corner of Madrid Lays Bare Flaw in Europe Inflation
- As ECB fights to spur inflation, housing costs are minimized
- S&P reckons changing CPI calculation could juice price growth
Madrid’s Malasana neighborhood.
Photographer: Geography Photos/Getty Images
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In the trendy Malasaña neighborhood of Madrid, Ramon G. Del Pomar’s rent tripled to 3,500 euros ($3,900) per month when his contract came up for renewal. It was the kind of bumper increase that’s become a scourge of up-and-coming areas across Spain in recent years -- all while official inflation averages about 1%.