Mon. Feb 26th, 2024
Lower sales in Argentina result in lower inflation in January compared to December

On Wednesday, the 14th, the INDEC will release inflation data for January. According to consultants, it is estimated to range between 20% and 23%. Although this number is slightly lower than December’s rate of 25.5%, there was a small deceleration in the third week of the month.

The first indication of what happened in the first month of the year comes from the City of Buenos Aires, which has a history of being aligned with the CPI at the national level. In Buenos Aires, January’s increase was 21.7%, marking the highest rate since 2012. The interannual variation of the index was an astounding 238.5%.

Economist RocĂ­o Bisang from EcoGo points out that her inflation estimate for January is 21,2%. “In general, it was a month marked by slowing down due to the drag left by December’s increases,” she said. She mentioned areas such as Health and Transportation where prepaid bills stood out or gasoline and train and bus fares weighed heavily on prices.

Meanwhile, economist Lorenzo Sigaut Gravina from Equilibra forecasted preliminary data for January at 22.5%. He explained that while car sales fell in January compared to December, demand for shopping malls and supermarkets remained relatively stable.

A study conducted by Ferreres & Associates shows that January’s inflation will end close to 18% monthly with an interannual growth of around 244.5%. Economist Fausto Spotorno highlighted that core inflation advanced at a monthly rate of 19.5%, marking an increase of over 268% annually – which indicates a fall in purchasing power due to wages running behind prices leading to remarking slowdown which eventually led to price decreases in various sectors like cars, shopping malls, supermarkets and gasoline stations among others.

In summary: Despite slight fluctuations in inflation rates during January, there were signs that purchasing power is falling due to rising prices outpacing wage increases – which may have contributed to some areas experiencing price decreases during this period

By Editor

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