Cuenca employers warn of rising inflation amid Iran conflict

The Confederation of Employers of Cuenca (CEPYME Cuenca) has warned that inflation remains uncontrolled due to the ongoing conflict in Iran and maritime transit difficulties in the Strait of Hormuz. In the province of Cuenca, the July Consumer Price Index (CPI) showed a 4% increase in costs, doubling the rate considered optimal for economic stability.

The region's limited productive fabric exacerbates the impact of energy fluctuations. Household energy costs, including electricity and gas, have risen by 7.3% over the last year, while transport fuels have increased by 6.5%. This creates a dual burden: businesses struggle with rising supply costs while attempting to avoid passing them to consumers, and families face reduced purchasing power due to essential service hikes.

While the organization forecasts an annual average CPI of 3.1% for 2026—contingent on the normalization of international trade routes—they noted that the withdrawal of government measures intended to mitigate Middle East conflict effects has heightened inflationary pressures. To assist the transport sector, a tax rebate on diesel has been activated following significant price increases.