On January 12, when the INDEC releases the consumer price index for the month of December, all eyes will be on corroborating whether the Minister of Economy, Sergio Massa, managed to sustain the deceleration that inflation showed in November with respect to previous months. The preliminary data that they handle in the Palacio de Hacienda, anticipate that yes.
“It will give almost as in November, perhaps a little more due to the seasonal issue, but we do not expect a significant jump,” a qualified official source anticipated this medium. Along these lines, he also revealed that the high-frequency measurements that reach government offices show variations similar to those of last month. These reports are based on supermarket dispatches of mass consumption products.
In any case, due to the higher increases in other items such as tourism or recreation and some adjustments that were made to regulated prices such as prepaid, private schools and tolls, among others, the average prices would be above. “We expect a number that starts with five,” They stressed the government.
According to the projection of the consultant eco go who drives Marina Dal Poggetto, “inflation for food consumed at home in December will reach 4.1%”. In this way, the item with the greatest weight within the CPI would be located 1.1% below the general level that would climb to 5.2%. Just 0.3 percentage points above the November mark. Along the same lines, the LCG firm registered similar movements, 3.7% for the food and beverages category and 5.2% for the average prices.
The Ministry of Economy, set itself the objective “lower inflation one point per two-month period”. This points to reaching April with a monthly advance in prices of around 3%. For this, it was proposed to reach a series of sectoral agreements that reduce the inertial component to bring “real inflation closer to theoretical”. In the 2023 budget, 60% was projected for the entire year, a figure compatible with the 4% monthly capped by the agreements signed by the Secretary of Commerce.
Extend Fair Prices
Through a resolution published in the official gazette this week, the Government extended the validity of the Fair Prices program until the end of 2023 and made the contract models official for the companies that sign the agreement. According to sources in the sector explained to this medium, it is a “formality” and this will not imply that the basket remains frozen until the end of the year.
On the other hand, updates will be negotiated with the companies that could be completed on a quarterly basis, as was the case with the Precios Cuidados program. “Agreements are a very virtuous tool to anchor expectations and they are being met. As regards prices, we did not find breaches and as regards the supply, it improves week by week”, they maintained from offices close to the Secretary of Commerce, Matias Tombolini.
Source: Ambito
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