In a matter of pilchas it is already official: inflation has reached 100%

Some advisors are starting to see that inflation could close the year 100% or more. The latest central bank survey, known as the Market Expectations Survey, passed the 90.2% and the FIEL consultant is betting he could reach the 112%.

The prophecy is being fulfilled in the clothing category. The data released by INDEC indicate that the increase in the voice “Clothing and footwear” salts 8.5% in July, accumulates an increase of 56.5% so far this year and in the last twelve months it has marked a growth of 96.7%, as you can see, close to 100%. The prices of pilchas, in twelve months, it rose more than 25 points above average inflation.

However, the same article but measured by INDEC in Greater Buenos Aires it showed the first official triple figure: increase clothing and footwear at the festivals surrounding the city of Buenos Aires 100.5%.

For some time now, the clothing category has been growing well above inflation. It is one of the most protected sectors of the economy. -has as a lobby, in fact, the protect the foundation– and also the president himself Alberto Fernandez publicly complained about the inflationary trend of the sector. “I protect them and the prices don’t stop rising” the President complained in May of this year. “There is a rampage of prices in that area. I protect them, I don’t let in processed products from China and the prices don’t stop rising here”, observed.

Does the same thing happen all over the world? No. Clarione compiled what happened in the last year with the sub-indices “clothing” in 14 countries and compared them with what happens here. (see infographic)

Beyond the fact that Argentina is known to be at the forefront of inflation, in few countries there is such a broad separation between the average inflation item and the clothing sub-item.

Brazil it’s a coincidence: in the last 12 months, inflation was 10.1% and clothing grew by 17%. Paraguay inflation was 11.1% and clothing grew much less, just 4.3%. kilos it is an extreme case. Headline inflation was 13% and clothing fell 0.3%.

The Argentine textile sector came out to defend itself a long time ago, in response to the president’s complaint.

On the one hand, they stated that “clothing prices are set at the beginning of each season (twice a year) and that March is the month for the launch of new products for the autumn-winter season. “When we compare it to other goods, the price increases of clothing and footwear are lower,” says Protejer.

As for the international context, they said there are inputs at record prices. raw materials, energy, raw materials and textile inputs, in addition to the effect of the increase in the exchange rate.

They also point out that, despite the strict protectionism that isolates them from foreign competition, apparel imports are on the rise and textiles were a record in 2021.

Extraordinary factors that do not obscure the exceptionality of clothing prices in Argentina. There you see a real uncouple.