The explanation that the rates will have a “moderate” impact on inflation is due to a recent INDEC report. Apart from the fact that the increases will be lower for those who have a social rate, it is known that the Government’s objective is that the tariff corrections be lower than the variation in the population’s income.
Own Indec came out to report how much the real inflationary impact will be on the calculation of the Consumer Price Index (CPI) in its annual version, increases in public services.
According to information from the Institute, a theoretical increase of 60% in the network natural gas rate has an incidence of 0.3% in the CPI calculated annually for Greater Buenos Aires, while, at the national level, the same is 0.1%.
In another reference, an increase in the electricity rate also of 60%, implies an incidence of 0.2% for the CPI of Greater Buenos Aires and 0.1% at the national level in the annual calculation.
With reference to the supply of network water, an increase of 60% has an annual incidence of 0.1% in the GBA CPI, while it is marginal in the national one.
To take a reference in comparative terms, the numbers change when it comes to a rise in fuel. For example, it is mentioned that for every 10% increase, there is a 0.15% direct impact, to which is added a similar number of indirect impact, which is usually called second-round increases. In other words, an increase of 60% adds a direct percentage point to the CPI and another indirect point.
In another order, in the same interview with AM750, Miguel Pesce highlighted that “the increase in the price of commodities worldwide impacted on inflation in Argentina, which was already high” and added: “Inflation expresses the distributive bid between economic factors and that is something difficult to solve in our country.” According to his view, “the solution to inflation is economic growth.”
Source: Ambito
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