Although food prices fell sharply in November compared to October and inflation rose less than the average for the month, in these 11 months of 2022 poor and destitute inflation continues to drive price increases. And everything points to it sectors of extreme poverty the year will end with inflation above 100%.
According to INDEC, in November the poverty threshold increased by 3.1% (in October it had been 9.5%) against an average inflation of 4.9%. But when you measure the first 11 months, poor inflation is 94.2% above 85.3% CPI (Consumer Price Index). It’s inside the inter-year comparison stands out for 101.8% of the food basket versus 92.4% of the average price increase.
Thus, the value of the basket of poor families (married couple and 2 minor children) increased from $31,724.38 to $64,012.22 (101.8%) in 12 months. With 3 kids, that goes up to $67,326.77.
Based on these data, it is estimated that the year could end with an increase in poverty, despite the social assistance that has been granted in recent months (bonuses for minimum wage pensioners, low wage workers and social plans) with a more limited scope than last year.
As regards the poverty line, the comparative results are similar: basket of poverty of 4.4% in November (in October it was 9%) against 4.9%, 91.7% in the first 11 months against 85, 3% and 97.4% year-on-year versus 92.4%.
Meanwhile, the household poverty basket (married couple and 3 children) increased from $73,917.81 to $145,947.87 (97.4%). In the case of a couple with 3 minor children, the poverty line rises to $153,505.04.
The total basic basket or “poverty”, in addition to food, includes other goods but not the rent for housing. If it were included, for a modest apartment, it would rise to $200,000.
The slowdown in food prices in November was influenced by the drop in the values of cuts of meat and some vegetables, legumes and vegetables (such as potatoes, onions, tomatoes) which had skyrocketed in the previous months. Fruit, on the other hand, continued to raise prices, as in the case of apples and bananas. Seasonal fruit (such as apricots, peaches) started out with very high prices.
For December, the CPI is expected to be higher than for November, as well as the poverty and deprivation lines.
For example, according to the consultancy firm LCG “in the first week of December, the Food Price Survey recorded a weekly increase of 1.1%. It is a monthly rate of around 4.5%, higher than the 3.6% with which November ended”. The food and beverage index presented monthly inflation of 3.4% on average over the last 4 weeks and 3.8% end to end over the same period”.
Source: Clarin
