The government makes efforts to control prices and speeds up the release of Fair Prices, as an important measure to control the inflation. However, private consultants have been anticipating hard data: andthe consumer price index will be in the order of 6%. IEven that data may be higher.
The different consultancies show some dispersion, thus data ranging from the 5.2% what project orlando ferreres, either the 5.8% parachute Analytics; the 5.9% parachute go green. Worse, there are others who see greater data, such as C&T, which projects 6.4%, and Libertad y Progreso, very close, with 6.3%.
For case, the Freedom and Progress Foundation whose index showed a monthly advance of 6.3%, again exceeding 6%.
As explained by the Foundation, “this month’s variations were largely conditioned by the “regulated price adjustments such as electricity, gas, fuel and private medicine”.
“Fair Prices” seeks to add 124 companies and will run until June 2023
In the measurement, the items that showed the greatest rental acceleration compared to November were ‘Housing, Water and Electricity’ (13.9%), given the removal of energy subsidies and the strong increase in them.
In turn, he pointed out that “Transport” showed an increase of 10.7%which is explained in advance by the raise the interurban bus ticket, which was 40% for the AMBA and had even higher increases in the provinces. The increase in fuels – which averaged 4% – also contributed, although to a lesser extent.
For its part, the category of Food and Non-Alcoholic Beverageswhich has the highest weighting in the CPI, rose 4.1%.
Eugenio Mari, Chief Economist of Libertad y Progreso said that “in recent months the urgency led to taking measures that are surprising for a Kirchner government: adjustment of spending, removal of subsidies, attempts to defiscalize social assistance. However, it is insufficient in light of the imbalances that the economy has been accumulating. For example, even with the last increase, the AMBA bus ticket is still 40% more behind than in December 2015,” he said.
Meat price on the rise: what is the Government going to do?
Meanwhile, the C&T Retail Price Survey for GBA presented a monthly increase of 6.4% in January, surpassing the 4.5% of January 2022 and the 6.2% of December. In this way, the twelve-month variation climbed to 101.2%, the mayoress since October 1991.
The items with the greatest increase were Transportation and communications due to the combination of the increase in public transport, mobile phone services and the sustained rise in vehicle prices.
He followed recreationwhich collected the increases in items related to tourism for the summer holidays.
is Health stands out andl increase in prepaid which was the second part of the doubling of the increase that was originally going to be given in December. For its part, the rise in Miscellaneous goods and services was driven by the increase in cigarettes. In home equipment and maintenance, there were widespread increases in the main components: household items, cleaning products and household services, the latter driven by the rise in wages for domestic workers.
Finally, food and beverages had a monthly increase of 5.2%, the highest since October. The behavior change was influenced by the acceleration of meat and vegetables.
On the other hand, for Focus Market menorth January, the inflation would be 5.7%according to the report published via barcode reader. “For this first month of the year they influenced the increase in regulated prices such as gasoline, transportation, electricity, gas and water,” said Damián Di Pace, director of the consultancy. Also, he revealed that food had a rise of 4.7%. “In the case of Meat, it had a partial impact due to the increase in shelves last week, but more late price recovery is expected in February,” said the economist.
The effect of increased meat
Many guns point to the fact that the price of meat was “asleep” due to the drought that forced many producers to part with their rodeo. Finally, it had only reached just over 42% over the previous year, and now it is “realigning”. An idea shared not only by livestock producers, but also by the Government itself. In fact, in recent statements the Secretary of Agriculture Juan Jose Bahillo Thinking that what is happening in recent days is a “realignment” of prices after having been for almost nine months without changes.
Even so, the increases in January boosted inflation in the first month of the year. For Fausto Spotorno, Chief Economist of the Orlando Ferreres consultancy, “meat had calmed down inflation a bit last year because, due to the drought, the producers were able to send animals to the market. But the animals run out and prices start to rise”explained.
Last week the value of meat in the Cañuelas market had risen 30% and it is expected that this week it will finish impacting at the retail level.
Far from the longed for 3%
Minister Sergio Massa’s idea of approaching inflation close to 3% later in the year seems increasingly distant.
“We started with inflation, which was at 7.4%, and in the first sixty days we settled at 6%, 6.4%, 6.3%. We aspired for November and December to park with 5%. And in January try to park around 5%, “said Minister Massa in an interview with him, where he assured” The goal is to put the three ahead in April “.
However, the data that has been shown does not seem to be in line with their projections.
January inflation, very hot and February does not loosen
Parachute Lautaro Moschett, Libertad y Progreso economist, “inflation is once again escaping from the parameters that the government managed and demonstrates the inability of price controls,” conditioned.
And added that “the problem is not in the gondolas, but in the constant depreciation of our currency caused by mistrust in officials and excess money supply. At the moment, there are no theoretical reasons to think that inflation is going to drop and the uncertainty in an election year may even worsen the situation”, he assured.
You may also like