The Government wants to arrive in April with inflation starting from number 3, but the announcements of increases for the first months of 2023 are accumulating and that goal is becoming more and more complicated. After the end of the year with a price increase of about 95%consultants already calculate a January of 5.6%higher than expected for December.
In the list of increases for the first month of the year are almost all articles. Buses and trains in the metropolitan area, prepaid cards, electricity, gas, petrol and diesel, rents, the monotributo, household appliances and the salaries of domestic workers will increase. In addition, food and consumer products can have an increase of up to 4%, as agreed between companies and the Ministry of Economy.
The increases coming for January are:
Groups: 39%
One of the major increases will be groups in the metropolitan area (AMBA). For the shortest section, of the minimum ticket will go from $25.20 to $35, an increase of 39%. For the rest of the routes, between 3 and 6 km, the fare will be $39; between 6 and 12 km it will rise to $42; between 12 and 27km, at $45; and for more than 27km of the route the cost will be $48. In all cases the social rate is maintained, with a 55% discount. According to the Ministry of Transport, almost 4.7 million people pay with this discount.
Trains: 27 to 79%
For AMBA train services, the minimum ticket will go from $17.25 to $22 on lines Miter, Sarmiento and San Martin (a 27% increase); On the line urquiza, will go from $11.25 to $17 (up 51%); in the lines Rock and South Belgrano$10.75 to $17 (58%) and online North Belgrain, $9.50 to $17 (79%). Even the sectors that are part of the social tariff, they say in Transportation, will be discounted by 55%.
Moving forward, from March to December, the transport rates for both buses and trains will be adjusted monthly according to the general inflation of the Greater Buenos Aires region of INDEC. If we take the November figure of 4.9% as a parameter, the projections estimate an update of around 1.70 pesos,
Prepaid: 6.9%
The 13.8% increase that had been decided on private medicine quotas for December was split in two. There has already been an increase and now in January it’s time to pay the second, 6.9%. In addition, the new monthly adjustment index makes its debut in February. It will be 4.91% if the owner has a net income of less than 6 minimum wages (which today reaches $371,718) or 8.21% if the income is higher. However, there are still doubts how to communicate the income of the service holder to the prepaid person.
Rentals: 81.39%
Without a new rent law -which is being worked on in Congress-, the current one, in force since July 2020, provides that the values of the contracts must be updated once a year, partly reflecting inflation. The update index is made up in equal parts of the monthly changes in INDEC inflation and the evolution of wages measured by the RIPTE (average taxable wage of stable workers). The increase of this index between January 2022 and 2023 gives 81.39%. That increase must be paid by those who signed the contracts in January.
Fuels: 4%
Oil companies usually raise their prices at the beginning of each month. But this January, the 4% increase they have agreed with the government will arrive a few days late: it will materialize from the second fortnight. The agreement between business and the economy envisages increases of 4% for December, January and February and 3.8% for March.
Oil companies applied seven increases over the course of 2022. In gasoline, they were below the annual CPI, while in diesel, they were above that indicator. With the increase in January, the liter of super petrol is estimated it will be around $157, below the official dollar.
Domestic workers: 7%
In November, the staff of private houses obtained a 24% increase on their current salary, to be paid in four installments. It has already given 8% in December and now in January the increase should be 7%. Subtract 5% in February and 4% in March, when the Household Employment Commission meets again, to review a future pay mix. The annual increase in wages of workers in private homes between March 2022 and 2023 will be 119.8%.
light and gas
It will be in January last phase of the abolition of the subsidy on the gas ticket for higher income sectors (Level 1). They already had one of 20% in October (originally it was supposed to be in September), another 40% in November, and one of 40% stays in January.
This is the subsidy on the cost of gas itself, which is one of the main bills. Furthermore, next Wednesday the 4th will be held public hearing to determine the new values gas distribution, i.e. the margin applied by companies (Metrogas, Naturgy, Camuzzi) for the provision of their services, and transport (TGS, TGN).
In light, there are conflicting positions on when the last subsidy removal will be. From Energy said the removal of 40% of remaining state aid will impact some Tier 1 users in January and others in February.
Waterfall
While residential users in the range of neighborhoods considered to have high purchasing power by Aysa, the state company that operates in the water service, have already lost all subsidies and recorded an increase of almost 150% in November, those with “average” have had a gradual reduction in state aid.
A percentage was taken from them in November (with an increase of 70%) and now, in January, a second reduction will be applied, this will cause your rates to have a near-up at 40%. In March they will join the first group and will no longer have state contributions. These neighborhoods that will have hikes in January They are Saavedra, Coghlan, Villa Urquiza, Villa Pueyrredón, Villa del Parque, Almagro, Balvanera and San Nicolás.
There is a third group, with lower incomes, who live in the neighborhoods of Mataderos, Villa Soldati, Villa Lugano and part of Greater Buenos Aires. In November, this group stopped receiving 55% of benefits. In January it will undergo a new 30% cut and from March they will keep only 15% of the aid until May.
Single fee: 72.48 at 100%
The Monotributo quota, paid by self-employed workers who invoice up to 6,019,594.89 dollars annually (as of December 31, 2022) will have an increase of 72.48% compared to January 2022. The difference with previous years is that the component of the quota who goes to social work will not be the same for all categories, as was the case up to now. It will be fixed for the first three (A, B, C) and from D it will increase as the maximum turnover of each category increases. This means that the last installment to be paid does not increase in the same proportion for all single-tax payers. Higher ladders will have a 100% increase.
Household Appliances (Domestic Tax)
In January, the increase in internal taxes for various electronic products and household appliances begins, which was voted with the 2023 Budget and is estimated to have an impact on final prices. The list covers air conditioning systems, cell phones, monitors, projectors, televisions, musical equipment, microwave oven, heating devices and hair dryers, among others. Products taxed at 17% become 19% and, if manufactured in Tierra del Fuego, they rise from 6.55% to 9.5%. Since the internal tax is applied to the internal tax itself, the effect of the increase is even greater: the 19% tax is in fact an effective 23.46% and the 9.5% becomes 10.50%.
NEITHER
Source: Clarin
