The high price of commodities gave Argentina oxygen in a global, and especially local, adverse context. Exports maintained the entry of dollars into the country. But at the same time, it put more pressure on inflation.
It is the paradox of Argentina: high prices benefit exports and foreign exchange earnings, but they pump more inflation inside the borders. But if international prices drop now, global inflation will tend to subside, which could accompany Sergio Massa’s plan to reach a monthly CPI of less than 3% -after the launch of the new Fair Prices plan-, but it will bring fewer dollars from the abroad.
In January, the FAO Food Value Index, which tracks the variation in international prices for a basket of basic products, fell slightly compared to December (-0.8%).
The figure contrasts with the peak that prices reached in March 2022, when they registered an increase of 17.1% compared to the previous month, due to the first effects of the war in Ukraine.
Although the overall price of cereals remained practically stable, but those of rice and corn did rise.
The international prices of rice “they increased by 6.2% compared to December”, due to “more restricted availability, strong local demand in some Asian exporting countries and movements in exchange rates,” says the FAO.
In addition, “due to strong export demand from Brazil and drought-related concerns in Argentina,” world corn prices also rose slightly.
Instead, the price of wheat fell 2.5% due to abundant production expected in Australia and Russia, which “exceeded forecasts”, says the FAO.
The prices of vegetable oils also decreased in January, by 2.9%. those of the palm and soybean oil “they fell due to the weak world demand for imports, while those of sunflower and rapeseed oils fell due to the abundant availability for export,” explains the United Nations organization.
The prices of sugar they also decreased compared to December 2022 (-1.1%), as well as those of dairy products (-1.4%). The price of the meat It kept stable. Exactly something that did not happen in Argentina: it rose 10% in three days.
The UN organization also confirmed a “contraction” in the supply of cereals in 2022-2023, “1.7% less” than the previous year, although slightly higher than December forecasts.
Source: Ambito
