City: Food led inflation at 30.4% in December

In the city of Buenos Aires, in the month of December, Food prices increased by 30.4%but due to the lower increase in services (+14.2%), the average inflation was 21.1%. With these data, during 2023, Buenos Aires inflation was 198.4%with the food with an increase of 243.8%according to data from the Department of Statistics and Censuses of Buenos Aires.

Since price increases were higher in the second half of the month after the peso devaluation, it is estimated that January a “statistical drain” of 5 points.

Therefore, December inflation, like that throughout 2023, hit low-income sectors with fixed assets, such as employees and pensioners, who allocate a larger share of their income to purchasing basic foods much harder. And it carries the value of family poverty basket of approximately $500,000 per month.

From these numbers it is clear that the national measurement that INDEC will report this Thursday will show a higher index because services have a high weight in the CABA (almost 60%) compared to the rest of the country and food has a lower weight. a lower weight than the rest of the country and that of services.

“In December, the change in the CPI fundamentally responded to increases in the following divisions: Food and non-alcoholic drinksTransport, Restaurants and hotels, Construction, water, electricity, gas and other fuels, Healthcare and Equipment and home maintenance, which together explain 75.2% of the increase in the General Level”, we read in the Report of the Buenos Aires Directorate .

The price movement in December was as follows:

• Food and non-alcoholic beverages increased by 30.4%. The main impulses came from Meat and derivatives (36.2%), Bread and cereals (32.0%), Milk, dairy products and eggs (26.3%), Sugar, pastries and desserts (30, 6%) and soft drinks (34.1%).

• Transport recorded an average increase of 30.4%, due to the increase in prices of fuel and lubricants for domestic vehicles and the increase in the value of cars and airline tickets.

• Restaurants and hotels grow by 19.8%due to increases in the prices of food prepared in restaurants, bars and taverns and in the rates of accommodation services in hotels for tourist purposes.

• Housing, water, electricity, gas and other fuels recorded an increase of 11.6%, due to the increase in rental prices. To a lesser extent, the adjustments in the values ​​of the common expenses of families and in the residential tariff for the water service stand out.

• Health: increased by 19.4% impact on drug price increases and prepaid drug rates.

• Home equipment and maintenance saw an average increase of 21.9%, due to the increase in prices of cleaning products and large household appliances. Next in importance were the adjustments in wages for domestic service.

During 2023, the largest increases in food were recorded in Meat and derivatives (+279.4%), Fruit (+257.8%), Sugar, pastries and desserts (+256.1%) and Bread and cereals (+243.8%).

The item that recorded the greatest annual increase was that of household appliances: 346.2%.

SN