for the major weight of services In Buenos Aires household spending, the January measure of inflation in the city of Buenos Aires would have been around 7%. And the The CABA index would once again be higher than that reported by the INDEC at the national level. The data from Buenos Aires will be known next week.
Last month, again the prices and tariffs of services and the prices regulated by the State and the Provinces rises much higher than the rest. And, as according to the CABA Directorate of Statistics and Censuses, the services weigh 58.59% in the Index overall average while nationally they are about 35%average inflation in Buenos Aires would be higher than that reported by the National Institute.
In the City of Buenos Aires, housing costs (such as rent and expenses), water, electricity, gas and other fuels contribute 17.43% to the index, slightly more than food (17.13%). On the other hand, for example, food weighs 35% in NOAs and NEAs and expenses related to accommodation between 7 and 8%.
The same goes for transportation. In the CABA it weighs 11.44% against 8.41% in the NEA. Health weighs 8.7% in CABA – for the weight of prepaid – against 5.26% in NOA. And restaurants and hotels account for 9.58% in Buenos Aires’ CPI and just 4.96% in the NEA.
What has happened in the last few months is that the prices and tariffs for services have increased relative to goods. For example, in December services in the city increased by 6.1% and goods by 5.2%. Applying the weights, the Buenos Aires index averaged 5.8% versus 5.1% for the INDEC nationwide. A difference of plus or minus 0.7 points.
In January the same thing was repeated since increase in public transport fares, mobile phone services and increase in vehicle prices. In Healthcare, the increase of prepaid (6.9%) and the values of medicines and the increases related to leisure and tourism. That’s why it follows Inflation in Buenos Aires could approach 7%.
Inflation for these months It hits the middle class hardest. because the services related to that sector have a greater impact on the expenditure structure of Buenos Aires: for example, 75% of families are affected by the expenses or rents. Also for expenses related to domestic staff, cars or prepaid cards and private schools. And also for leisure, culture and meals away from home. The exceptions are the neighborhoods of the southern zone with consumption expenditures similar to those of the suburbs.
With the skyrocketing price of meat and other foods, it is assumed that the indices reversed in February and the INDEC measure would be higher than the Buenos Aires CPI, shortening the differences and the inflation indices of recent months could also be in line .
Finally, despite the monthly differences, in 2022 the national CPI was 94.8% and Buenos Aires’ CPI was 93.4%.
NEITHER
Source: Clarin
