Food inflation slowed down in the last week of May: why?

Food inflation slowed down in the last week of May: why?

Although the food and beverage price index rose in the month, during the last seven days of May, there was a slowdown in the rise in the item, thanks to some drops.

Mariano Fuchila

Although the food and drinks went up 7.8% in May and exerted more pressure on the cost of living index (the CPI reported by INDEC), in the fourth week of the current month, the rise in this item averaged 0.32%, slowing down one percentage point compared to the previous seven days , according to a report by the consultancy Labor Capital and Growth (LCG), directed by Guido Lorenzo. The note was given by meat and vegetables, which registered a drop in prices.

Likewise, they indicate that there are eight categories that were located, in this fourth week of the month, above the average increase of 0.32%. Oils was, by far, the one with the highest recorded increase, with a rise of 9.76%; sugar, honey, sweets and cocoa rose 3.77%; dairy products and eggs, 3.13%; bakery products, cereals and pasta, increased 2.63%; condiments and other food products, 2.20%; beverages and infusions to consume at home increased 1.86%; ready-to-go meals, 1.73% and fruits, 1.01%.

Meat fell 2.62% while the vegetables did the same in 4.52%. The report highlights that, without these drops that slowed down the average rise, the weekly increase would have been 2.4% in food.

However, from LCG they clarify, regarding the drop in the price of meat, that the category is 12.9 points from the average of the rest of the foods, which shows that the price could still have a long way to go.

Inflation for the month and by category

While awaiting the implementation by the Ministry of Commerce of a new Fair Prices program focused on local stores, called Precios Justos Barriales and with a monthly increase guideline of 3.8%, the inflation registered by LCG doubles down on that guideline.

Regarding the percentage of products with weekly increases, something that gives the guideline for the speed of price remarking, the report showed that, in the fourth week, 38% of products registered an increase6 percentage points above the average of the last 4 weeks (32%).

Thus, so far this month, with an average inflation of 7.8%, three of the ten categories are above the monthly average, explaining 38% of the total monthly variation: ready-to-go meals (14, 8%); dairy products and eggs (11%) and condiments and other food products (10.1%).

Source: Ambito

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