2023-10-27 23:30:00
The inflation of food and drinks slowed down in the last week of October and it might be below 8% for the entire month, according to private sector estimates.
Food products have the highest incidence in the CPI published by the INDEC. In fact, during September they experienced an increase in 14,3%above the general index that showed 12,7%the biggest monthly increase in 32 years.
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At the same time, the accumulated variation climbed to 117.5% and the interannual increase reached 150.1%, both exceeding the general records of the increase in the cost of living until September.
Food inflation slowed this week
In the last week of the current month, the Food and Beverage Survey of LCG recorded an increase of “0.7%, decelerating 3.2 percentage points respect” to the last seven previous days.
“The monthly average inflation accelerated, placing itself in a 7,2% while in the tip-to-tip measurement it reaches the 7,9% in the last four weeks, leaving a higher drag for November,” the report detailed.
At the same time, the economic consultancy reported that the week ending showed that “the percentage of products with price increases fell and stood at 19% of the total basket.” “The monthly average of 22%, which means that the total basket adjusts every four and a half weeks,” she added.
For its part, since EcoGo, chaired by economist Marina Dal Poggetto, recorded that food values increased 1.7% the week before the general elections. Thus, they predicted an increase of 9,5% monthly.
Weekly inflation: the Economy index marked a rise of 2.2%
According to Secretariat of Economic Policyinflation in the third week of October, in which the presidential elections were held, was 2,2%same percentage as in the previous seven days.
Vegetables, with 6.0%, was one of the items that suffered the most from the impact of the variations. Meats (3.3%) and Clothing (2.4%) also recorded gains. On the contrary, Food and Drinks (1.9%) marked a slowdown in relation to the previous weekly measurement (2,2%).
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The portfolio that operates under the orbit of the Ministry of Economy reported that the behavior of prices was influenced by “a context of significant pre-electoral uncertaintycharacterized by increases in the value of financial dollars and concern among many producers, merchants and consumers.
Food grew faster than wages
In August, the salaries (7.6%) they grew half as much as food (15.6%). In the year-on-year comparison, the difference was 11.7 percentage points in favor of the latter, while in the accumulated comparison it widened to 14 pp.
If the magnifying glass is placed on the salaries of informal workers, the drop in purchasing power to buy products from the food basket deepens. In fact, heUnregistered employees were 26.4 points below the accumulated increase in food products in the first eight months of the year.
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The Government renewed Fair Prices for 60 days
In order to contain the escalation of prices ahead of the November 19 ballot, the national government renewed Fair Prices for 60 days and will negotiate with companies so that increase with a ceiling of 5% in the November and December two-month period.
The current program includes 52,300 mass consumption products and expires on October 31. The idea of the Ministry of Commerce is that companies agree to extend the initiative with the same increase pattern.
With the aim of seducing the firms, the Government offered them a series of benefits such as the suspension of payment of charges on the purchase of foreign currency for the importation of merchandise, the reduction to 0% of the export duty rate for various products and a extension of maturities for the payment of advances of taxes and social security obligations.
MFN / Gi
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