The IVA hike in September has resulted in inflation jumping from 2.7% in August to 3.5% in September according to figures from the National Statistics Institute (INE), with prices rises in all sectors.
One of the questions being asked is whether the government will compensate pensioners for their loss of purchasing power.
The government is currently obliged to compensate pensioners for any increase in inflation above the official target level, which for 2012 was just 1%. The government normally makes the decision based on the level of inflation in November each year.
At the current level of inflation, the Social Security system would have to fork out 2.5 billion euros this year, with another payment of the same amount at the start of next year. The money could come out of the Pension Reserve Fund, currently standing at 67 billion euros.
During a budget presentation, Finance Minister Cristóbal Montoro deftly, and in true political fashion, avoided questions on whether the government plans to abolish the law guaranteeing compensation for pensioners if inflation rises above the target figure.