Argentina registered a important change in relative prices since Javier Milei’s government began, which explains why consumption does not rebound despite the fact that the average income of the population has improved since the beginning of the administration.
Different studies warn that although inflation has been slowing, When the different items in the basket are analyzed, it is noted that there are some that lagged behind inflation, while others have surpassed it.
An example of this is the price of bread. In November 2023, the kilo of French bread, According to the National Institute of Statistics and Censuses (INDEC) in Greater Buenos Aires, it cost $1,244.72. If inflation up to September (220%) is applied to that value, the current price should be $3,983.10. However, the value recorded in the last CPI report was $3,834. That means that bread fell 3.74% in constant currency during the first half of the Libertarian government.
On the other hand, a kilo of quadril cost $4,224.45which at today’s values would be $13,518.24. The price that INDEC revealed in September was $14,247.87. That is to say, rose 5.4% in real terms.
In this regard, the Argentine Institute of Fiscal Analysis (IARAF) carried out a study of relative prices that highlights the notable differences in behavior between the different items that make up the CPI.
taking as base the month of November 2023, the value of the item housing, water, electricity and other fuels grew 53.2%, while the component clothing and footwear fell 29.1%.
“The change in trend of Inflation starting in May did not modify the trend of relative prices of the main goods and services consumed,” Argañaraz maintains in the report.
The analyst highlights that “food and clothing continued their relative cheapening and rents, public services and communications, their relative increase.”
“Rent and public services make up the component of the basket that increased its relative price the most between November 2023 and September 2025. At the other extreme, clothing and footwear are the goods whose relative price fell the most between the same months,” the report says.
Among the items that showed the largest increases stand out Educationwith a rise of 25% compared to November 2023, and Communicationswith an increase of 23.7%. They follow him various goods and services (+20.5%), transportation (+11.8%), restaurants and hotels (+8.7%) and health (+5%)according to the survey.
Instead, their relative prices fell the alcoholic beverages and tobacco (-4.4%), recreation and culture (-7.1%), food and non-alcoholic beverages (-7.6%)and home equipment and maintenance (-17.2%)reflecting less dynamism in these items compared to the general price level.
Source: Ambito
