New price data: Food hikes and other hikes push inflation to 5.5% to 6%

2022 ended with a record inflation figure. from December to December the cumulative figure was 94.8%. Even in the last month of last year, despite a slight decline, the CPI remained high at 5.1%. According to specialists, the beginning of 2023 will not be much better. Food, prepaid, fares and fuel, are the items indicated as responsible for showing again a high number.

For the consultancy company EcoGo, directed by Marina Dal Poggetto, the CPI data January would be at 5.6%, 0.2 percentage points higher than expected last week. “This is mainly due to a record slightly higher than estimated food inflation.”indicated in a sheet the company that analyzes the prices.

The analysis done on the second week of January warns a 1.2% change in the price of food, compared to the previous week. “With these data and considering a projection of weekly change of 0.8% for the next two weeks of the month, inflation for food eaten at home in January would rise to 4.4% per month”have emphasized by the firm.

Another item that will have a strong impact on the January data will be regulated products, highlighting the prepaid increases (6.5%), combustible (2 e gas, electricity and water tariffs (14.1%, 19.6% and 20.1% respectively), Domestic service (6.5%), bus and train fares in AMBA (between 20% and 70% depending on the service), among others”, they highlighted.

As a result, a survey prepared by another consulting firm, LCG, in the third week of January there was a 1.6% increase in food and beverages, which implies an acceleration of 0.76 percentage points, compared to the previous week. The document highlights the increase in vegetables, up by 6.9%; followed by dairy products and eggs (5.7%). Meats, for their part, recorded a 0.3% drop in price.

The latest Survey of Market Expectations (REM) conducted by private analysts of the Central Bank of the Argentine Republic (BCRA) indicated that 2023 will close with a Consumer Price Index (CPI) of 98.4%, compared to 94.8% with which 2022 ended.

The latest REM survey estimates the CPI for this month will be 5.5%or 0.4 percentage points above December inflation.

NS