As the population’s consumption continues to rise, there are several factors contributing to this trend. One explanation is an attitude of prevention among consumers, who are defending their purchasing power from inflation and the fear of a new devaluation. This has led them to spend their pesos on various items, rather than traveling or buying a house.
According to analysts, another factor is the “substitution” effect – those who cannot afford to travel or buy a house are spending their money on appliances or stocking up more at the supermarket. Specifically, massive consumption, which refers to packaged products sold in supermarkets and neighborhood self-service stores, has increased by 1.5% in the year, according to data from consulting firm Scentia. In addition, Nielsen IQ reports an interannual variation of 7.4%, with an average price increase of 112.8% in the same period until September.
Despite these trends, economists suggest that consumer tactics may worsen in coming months with the election of Javier Milei as President, the rise of the dollar and the expectation of higher inflation starting in December. These factors are likely to induce consumers to adjust their budgets even further and make changes in their spending habits until they see changes in this trend.