Thus, the food item not only puts pressure on the rise in the Consumer’s price index, but also has a full impact on the low-income sectors. The rise in alternative dollars, analysts explain, was one of the factors that influenced the rise of some products, which registered increases in “between 7 and 15% in the last days of last month.”
In this scenario, according to the survey carried out by the group Free Consumers in supermarkets and nearby businesses Buenos aires cityhis “basic food basket” rose 8.5% in April, to accumulate a rise of 40.8% in the first four months of the year.
As highlighted by the entity, fruits and vegetables climbed 14.1% last month and added a rise of 76% in the first quarter. The meatsmeanwhile, rose 4.7% in April and completed an increase of 37.3% so far this year. the products of store rose 9.9% in April, accumulating a rise of 25.6% in the first four months.
In the same tune, the Basic Food Basket measured by the Institute for Social, Economic and Citizen Policy Research (ISEPCI) in shops close to the suburban Buenos Aires, presented a monthly rise of 8.1% in April, to add an increase of 42.4% in the first four months of the year.
“In April, the items that increased the most were Warehouse (9.65%) and Meat (9.41%), while Fruits and Vegetables rose 3.39%. In the four-month period, meat increased 53.95%, fruits and vegetables 44.52%, and grocery products 34.50%”, the study highlighted.
On the other hand, the value of theTotal Basic Basket”, which in addition to food includes essential expenses in health, education, transportation, clothing, fees and housing maintenance expenses, rose 6.7% in April, and accumulated an increase of 39.3% so far this year.
From the Institute they highlighted that food increased 10.5% monthly average in the first quarter of the year. “The continuous increases in the basic products of the population’s consumption, especially food, wreak havoc on the purchasing power of all families, particularly those with lower incomes,” said Isaac Rudnik, director of ISEPCI. .
Analysis
According to the survey of the consulting firm Focus Market, food rose 8.9% in April. “The rise in prices continued to accelerate. To the macroeconomic fundamentals of a fiscal deficit that continues to be financed with pesos in a context of its fall in demand, was added the recent devaluation of the peso against the dollar in its parallel price”, Damián Di Pace, director of the firm, explained in this regard, and detailed: “In gondola, there have been increases of between 7 and 15%, according to the category, in the last 15 days. All mass consumption categories travel to triple digits of year-on-year inflation compared to April 2022. Beverages increased 108%, Cleaning 116% and Personal Care 125.6% on average.”
“Although the informal dollar had a strong rise, What worries companies is the price of cash with liquidation, which is the reference dollar for the replacement of supplies and raw materials. when there is no access to the official wholesale exchange rate or delays in import approvals,” Di Pace remarked.
Finally, the analyst highlighted that “the price variation is being reflected in its behavior in gondola sales, with double-digit falls in supermarkets of up to 500 m2.” “For their part, consumers who went to large shopping malls saw a lack of products in the categories that are part of Fair Prices. The deterioration of the purchasing power of Argentines increases, hitting not only registered wage earners but even more unregistered and informal ones”, concluded Di Pace.
Source: Ambito
