AME4432. BUENOS AIRES (ARGENTINA), 12/14/2021.- Photograph of commercial premises this Thursday in Buenos Aires (Argentina). The consumer price index (CPI) in Argentina recorded a year-over-year increase of 51.2% and 2.5% compared to October last November, according to the National Institute of Statistics and Census (Indec). who indicated that the increase in food and beverage products was the one with the highest incidence in all regions, mainly in meat and derivatives. EFE / Juan Ignacio Roncoroni
The increase in food and soft drinks (4.6%) was the one that had the greatest impact across all regions in the June inflation result released by Indec on Thursday. Within the division, the increase in vegetables, tubers and legumes stood out, although the the increase in meat and derivatives was what had the greatest impact in most regionsas reported by INDEC.
In the first 6 months, food increased 39.9% above the overall average of 36.2%.
Some staples in June went up in double digits. This is the case of the metropolitan region, with the price of lettuce increasing by 37.8%, tomatoes by 20.4%, potatoes by 21.5%, sunflower oil by 12.9%, dried tagliatelle 12.9%, 11.7% of coffee, among the most important.
Although some of these increases are seasonal, there are no setbacks in July so far. In addition, the new agreed increases in the prices of treatments which correspond mainly to food must be added.
With these increases, the basic food basket that measures poverty would already be around $ 105,000 for a typical family (married couple and 2 children) for Capital and GBA.
Between January and June, in just 6 months, French bread increased by 49.93%, table bread by 57.75%, wheat flour by 60%, chicken eggs by 70.64% , the whole chicken by 59.39%.
Due to the higher incidence of food in the lower-income and fixed-income sectors, both the average inflation in June and that of the first semester between retirees and wage earners is much higher than that of the rest of the sectors.
However, all these percentages reflect a price evolution that has marked a new leap since the beginning of this July, following the resignation of Martin Guzmán. And they have been accentuated this week with increased financial volatility and the jump in alternative dollars.
Consultant LCG points out that “for now, our food price survey has shown a 4% increase in prices in the first two weeks of the month, which is 8.2% monthly. Our inflation projection for July exceeds 7% monthly ”.
From here it follows that the indicators of destitution and poverty are expected to show a new increase this month because retirees and retirees with minimum wages and vulnerable sectors will not receive any “income increases” or bonuses this month like the ones they received in the second quarter of the year. And it is in doubt whether they will charge it in August.
The speed of price increases is also leading to a sharp deterioration in the purchasing power of income within the same month, as the differences in value between an early, mid or late month purchase have become very significant.