Inflation: too early to think “the worst is over”

Inflation in April was 6%, some ten more than the Government expected -it wanted a number that started at least at 5- and clarified that it was at least reckless to say that “The worst is done”. Until it fell by 7 tenths of a percentage point compared to the March figure.

Especially in May, the increase in fuel has become a burden on the pocket and cost. And in June should begin to apply tariff increases on public services. There have also been increases in prepaid drug companies. And besides, there is another silver plan in the making.

Accumulated inflation in the last 12 months, at the level of 58%, is the highest, moreover, in the past 30 years. Before the outbreak of Russia’s war against Ukraine, President Alberto Fernández declared war on inflation. So far, no news up front.

But there is really disturbing data for April.

One of the most protected sectors, the clothes and shoes, again rose sharply in other items, up 9.9%. Textiles says the prices of raw materials, the war, taxes, and rental costs in shopping malls explain this unity. They say nothing about the fact that there is very little imported competition.

What is food (+5.9%) is more distressing and, if you will, is one of the main reasons that igniting the battle within the Front of All. With rising food prices, the pressure on the quality of life of low -income households is becoming unbearable.

Raising the minimum, vital and mobile wage, reinforcements to social plans, especially the AUH and the Food Card They run after inflation. The same is true of the opening of paritarias, which have not solved more or less a problem recently: the number of wage workers receiving income below the poverty line.

This scenario will certainly intensify discussions about will do. The intensification of price controls, the threat of the application of the law of supply, or of closure, or control of stocks, will again stimulate internment with the ruling party. Some think about how to limit the rise in prices and also some think about what effect this inflation will have on electoral preferences.