Inflation among the poorest – the so-called destitute – skyrocketed to 11.7% in February. And you have to go back to April 2002 – after the collapse of convertibility and the mega-devaluation to find a higher percentage (17.1%).
Thus, in the first two months in the capital and in the suburbs of Buenos Aires the poverty line accumulates an increase of 19.8% and in the last 12 months of 115.1%.
February’s data surpasses the previous high of 9.5% in October 2022 and also far surpasses price increases in other sectors.
In the City of Buenos Aires, the poverty line increased by 9.29% according to the Buenos Aires Department of Statistics. From this it can be deduced that in the suburbs of Buenos Aires the prices of basic foods have, on average, increased by more than 11.7%.
In turn, it is obvious that within the country, above all in the North Region, and above all in Tucumán, the poverty line has also made a greater leap with 11.17%, an increase of 22.13% in quarter and a year-over-year increase of 117.86%, surpassing Capital yGBa so far in 2023 and also the year-over-year mark.
The speed of the price increases of basic foodstuffs is the most relevant characteristic of the current inflation, rather than the cancellation of the bonuses and/or income reinforcements that the Government grants from time to time to vulnerable sectors. and that is why it is needed to a new increase in destitution and poverty in early 2023, above the high values of 2022.
On the 30th of this month, these two key indicators for the second half of 2022 will be known, according to INDEC data.
The inflation of the poor was followed by that of the poor with a monthly rise of 8.3%, with 16.1% in the first 2 months and in the 12 months with a rise of 111.3%.
With these values, a typical household must have an income greater than $80,483.13 to not be destitute and greater than $177,062.87 to not be poorwithout calculating the possible rent.
Then the basic bin for a typical family renting a modest home would be around $250,000a value that is very difficult to achieve even for heads of households who have a registered job.
The 11.7% increase in the poverty line exceeded average inflation by 6.6% because the prices of basic foodstuffs which, in proportion to their meager incomes, are mostly consumed by families in extreme conditions poverty – particularly common ground beef and fruit – have had increases of between 10 and 35%.
In March these values continue to rise, due to the redials of prices and also due to the drought which has limited the supply of vegetables, fruits and vegetables.
In February, in just one month, for example, the price of ground beef increased by 35%, rice by 14.6%, eggs by 13.2% and sweet potatoes by 13%.
On average in February, the prices of meat and derivatives increased by 21.1% and fruit by 17.5%.
All these values and indices anticipate that in this first quarter both indigence and poverty would jump because the incomes of low-income sectors, of irregular wage earners (“in black”) and also of registered wage earners and the self-employed are lower than the evolution of poverty and poverty lines.
Charles Arterburn is a seasoned business journalist for News Rebeat, where he provides comprehensive coverage of the latest trends and developments in the world of finance and economics.