The weekly variation is explained by more than 80% due to the increase in meats and drinks, although it was compensated by the decline of dairy and eggs.
The Jump of the dollar at the end of July already hits the gondolas and the prices of food rise 3.1% so far in August as a result of the rises in meat and drinkswhich were slightly compensated by the decline of some products.
The data emerges from the last progress report prepared by the LCG consultancy for the second week of the current month, where The food and beverages relieved threw an increase of 1.1% after the 2% increase in the first week. In July, the wholesale exchange rate advanced more than 14%.
The increase in the price of meat and drinks explained 80% of weekly inflationwhich was slightly compensated by the decline of dairy products and eggs, which fell around 0.5% in the comparison against the first week of the month.
Fruits were above the weekly averagewhich had a leap of 4.2%; Drinks and infusions to consume at home (+2.2%); meat (+1.7%); oils (+1.5%); and sugar, honey, sweet and cocoa (+1.3%). At the other extreme, meals ready to carry back 0.7%.
Supermarket prices inflation consumption
Mariano Fuchila
In addition, In the last four weeks the average inflation was 1.2% monthlywhile the measurement between tips amounted to 2.5% monthly, explained in 78% by the rises in vegetables, fruits and drinks, according to survey by web scraping based on the prices of 8,000 foods and beverages of 5 supermarkets, with weights corresponding to the structure of the consumer price index of the city of Buenos Aires.
August inflation travels to 1.7% monthly
On the other hand, the weekly report +Midweek of Econviews remarks that after the small jump of July inflation (1.9%) for seasonal reasons, August inflation “runs 1.7%” at a monthly level “comparing the first two weeks against the first half of July.
The consultant states that August will be a fire test for the Pass-Through, and remembers that since the implementation of the exchange bands, the dollar rose 21% so “it is inevitable that part of this moves to prices”especially for agricultural exports and imported goods, although, so far, the impact was limited.
“The other key factor is the weakness of the economy, and in particular of mass consumption, which prevents the devaluation from reaching the gondolas,” says the text of Econviews, which sees “a few months of inflation around or slightly above 2% monthly, especially if the exchange volatility follows before the elections.”
Source: Ambito
