The cost of the basic basket, which measures the poverty line, rose 2.3% in December. During the year it rose 106.6%, behind year-on-year inflation, which was 117.8% in the last month of 2024.
He cost of the total basic basket (CBT)which measures the poverty line, accelerated for the first time in four months in December, marking a 2.3% increasehigher than 1.5% in November. It happened in tune with a greater rise in general inflation.
The data comes from information published this Tuesday by the INDEC. Since the CBT measures the poverty line, in the last month of the year A “typical” family (composed of two adults and two children) needed $1,024,435 to not be considered poor.
With this variation, In the accumulated of 2024, the basic basket increased 106.6%. In this way, the figure was below the 117.8% that INDEC’s own Consumer Price Index (CPI) rose.
How much did the food basket increase?
In parallel, the basic food basket (CBA)which functions as a threshold for the indigence line, also registered a monthly increase of 2.3%, while during the year it advanced 86.7%far behind the CBT and the CPI. It is worth noting, however, that this basket had had a strong increase in December 2023, after the devaluation of the first days of Javier Milei’s Government.
The CBA is determined taking into account the essential kilocaloric and protein regulatory requirements so that an “equivalent adult” (male between 30 and 60 years old, moderately active) covers those needs for a month. In turn, the foods and their quantities were selected based on the consumption habits of the population based on the information provided by the National Household Expenditure Survey (ENGHo).
To determine the CBT, the CBA is expanded by considering non-food goods and services. The estimate is obtained by applying the Engel coefficient (CoE)defined as the relationship between food expenses and total expenses observed in the reference population.
Inflation accelerated in December
Inflation was 2.7% in December. According to INDEC data, the general CPI was driven by the division of regulated prices; Rates and rents explained a 5.3% increase in the Housing category, while adjustments in telephone and internet services drove a 5% variation in Communication.
“This occurs in a month in which the index presents a positive seasonalitylinked to the holidays and the beginning of the summer vacation period, and in a context where both economic activity and the real income of the population show a strong recovery,” said the Minister of Economy, Luis Caputoabout the December data.
Source: Ambito
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