“In consumption in the fifth month of the year, its fall slows down compared to the level of April. The bonuses granted by the IFE, the adjustment to retirees and pensioners, the parity opening have allowed sales to increase in volume but still with year-on-year falls The acceleration of inflation is not being able to be compensated by the level of income of Argentines” said Damián Di Pace Director of the consultancy Focus Market.
In the accumulated figure for the year, the Metropolitan area persists with a drop in consumption at a double-digit rate, while the Interior remains stable despite showing a retraction for the third consecutive month.
Analyzing the consumption situation by family of products, they all regress: Food, as well as Personal Care, are the ones with the greatest drop in consumption, while Beverages and Cleaning present negative variations of lesser magnitude in the accumulated 2022 (Jan-May) vs 2021. The regression of Beverages is leveraged by Alcoholics, who fell in consumption -3.3% while Non-Alcoholics gained +1.9%.
“The salary will be affected in the coming months, but even more so families that depend on non-constant income, such as the case of Monotributistas, Self-Employed and Informal. The correction of the regulated prices of the economy such as electricity, water, gas rates will generate direct and indirect impact due to the increase in family spending and the increase in retail prices by industry and commerce, which will have to pass on the increase in their costs Inflation in food and beverages falls to 4.9% in May, although still in a very high level” added the economist.
Of a total of 120 product categories analysed, within those that have shown strong advances in consumption in the last month, Gin, Isotonics, Sweets and Vodka stand out, while mainly Alcohols, Cleaning Products and Frizzants are on the decline.
“Argentine families, for their part, choose to pay by credit card on many shopping trips to finance current expenses such as purchases in the supermarket. This behavior occurs especially in the Wholesale supermarket. Stocking at a total financial cost of 82% per year with the card in many categories pays off by advancing the purchase of products that exceed 100% in their price variation year-on-year,” they added.
Source: Ambito
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