“In the third month of the year, consumption in local formats fell. LInflation is accelerating and the income of Argentines is extremely deteriorated. The war against inflation has been no more than a sign of desire, but in practical terms nothing has changed to improve expectations of a slowdown in the future. Market expectations that projected inflation for 2022 of 54.7% today already see it at 60.9%. ” indicated Damián Di Pace Director of the consultancy firm Focus Market.
In the accumulated of the year, the Metropolitan area persists with a drop in consumption, while the Interior, although it shows positive rates, in March 2022 it already shows a drop in consumption.
“Perhaps the most worrying fact is that consumption in the summer months grew driven by the Plan Previaje in the interior of the country. Many had a credit balance that boosted tourist activity throughout the country. In the month of March now consumption also falls 6.3% in the interior Social data does not accompany, organizations do not represent, employment is precarious and economic activity shows symptoms of slowdown with problems in Gasoil for transportation, external restriction due to lack of dollars and correction of relative prices of the economy ahead,” added the economist.
Analyzing the situation of consumption by family of products, Food falls back as well as Personal Care while Beverages and Cleaning present positive variations in the accumulated 2022 (Jan-Mar) vs 2021. The growth of Beverages is leveraged by Non-alcoholic, who gain +1 .3% while those with Alcohol fall in consumption -3.5%.
Last week, given the sharp escalation in prices, the government decided to advance joint negotiations and call on more than 25 sectors of the economy to begin negotiations immediately to prevent wages from losing more purchasing power.
For Di Pace, this measure will not compensate for the loss of income: “The paritarias make up only a shrinking portion of the population. The rest is made up of informal, monotributistas, self-employed who do not have constant income and inflation is deteriorating their quality of life. Unfortunately, with a job that in the last 10 years fell in the private sector in real terms, reversing this situation is only possible by changing the current rules of the game that are restrictive towards job hiring due to the risk that it entails, “he concluded.
Source: Ambito
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