In the last three months until February, staple foods such as milk, rice, oil, flour and household items such as bleach, detergent and soap toiletries are up more than 100%.
On average, the prices of Staple foods increased by 74.46% against an average inflation of 64.74%. Due to the greater weight they have in the calculation of the INDEC Price Index, the prices of Food is what drives inflation the most upwards and hit low-income individuals and families hardest.
These figures are the basis of the Economy’s decision to facilitate the importation of food because in dollars the prices abroad are lower than in the country, with the aggravating circumstance that the income in dollars of the Argentine population is much lower than that of Europe or the United States. And these price surges have occurred despite the fact that domestic production is declining, among other things due to a decrease in the population’s income, especially wages and pensions.
Food prices impact the index by almost 30% of prices of the Capital and Greater Buenos Aires. Within the country, especially in the poorer regions, this incidence is higher and can even be around 40%.
For example, over the last 12 months, with inflation of 277.1% in Capital and GBA, food prices were responsible for 79.19 points. In the NEA, with annual inflation of 271.9%, food prices are responsible for 108.31 points
Over the past three months, some staple foods and household items have increased by more than 100% in the Metropolitan Region.
This is the case of flour (+ 129.26%), white rice (+ 130.76%), sunflower seed oil (+ 117.03%), fresh milk (+ 122.90%), liquid detergent (+ 139.38%), bleach (+127.70%) and toilet soap (+111.55%).
Meanwhile, INDEC reported that the products food and beverages show a level of use of installed capacity equal to 57.7%lower than that recorded in January of the previous year (60.4%), mainly linked to the lower production of beverages and dairy products.
According to data from the industrial manufacturing production index, the production of soft drinks, waters, soft drinks, beers, diluted juices, ciders and spirits recorded an interannual decline of 12.1% in January.
On the other hand, regarding the preparation of dairy productsAccording to data from the National Dairy Directorate of the Ministry of Agriculture, Livestock and Fisheries (SAGyP), the primary production of milk, the raw material for the dairy industry, presents an interannual decline of 12.6% in the month under analysis.
Source: Clarin
