2023-11-24 05:49:00
With a monthly inflation of 8,3%the Consumption Indicator (IC) of the Argentine Chamber of Commerce and Services (CAC) showed a decline of 1.5% year-on-year in October and a contraction of 4,3% compared to September.
This is the fourth consecutive month with a negative variation and the first with a year-on-year decline. In this way, the IC accumulates a growth of 3.2% year-on-year in the first ten months of the year, “although the loss of dynamism seen in recent months would continue to accentuate“, clarified the entity.
“Leaving behind the exceptional positive value of last month, explained mainly by an advance in consumption resulting from electoral uncertainty and an expectation of price increases, “The downward trend in the interannual growth rates exhibited by the IC as of January continues”indicated the CAC report.
Consumption fell 23.2% in recent days, according to a private study
“The climate of electoral uncertainty due to the primary elections and the expectation of a runoff explain the difference between the evolution of income and consumption. Added to itthe moderate effectiveness of VAT refunds did not have a sufficient positive impact to maintain or increase the level of consumption in the short term.. Inflationary expectations remain high and the signals given by the incoming government will be essential to moderate them,” he noted.
By items
In October, the clothing and footwear category showed an estimated increase of only 1.3% year-on-year, due to a slight recovery in the purchasing power of households and a relative cheapening of the sector.
On the other hand, the transportation and vehicles chapter registered a growth of 11.8% year-on-year, as a result of a large increase in car and motorcycle registrations compared to the same month of the previous year: 21.5% and 44% respectively.
“The marked growth originated from the release of restrictions on the entry of imported unitswhich led to an increase in sales,” detailed the CAC.
Retirees: how much purchasing power they lost once morest inflation
For its part, Recreation and culture rose 1.4%, explained both by the lowering price of the sector and a slight recovery in the purchasing power of households.
Regarding the housing, rentals and public services section, this showed an estimated increase of 4.7% year-on-year in October, mainly due to the increase in electricity demand.
Regarding the rest of the items, these experienced an estimated decrease of 7% year-on-year in October (and a negative impact of 4.0 percentage points), positioning themselves 7% below pre-pandemic levels.
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