It does so after reaching its highest level in 11 months in April, at 8.5%. The data is key, waiting for the following week to know the National CPI that will be reported by the INDEC
In the middle of the exchange tranquility After the spike in April, inflation in the City of Buenos Aires slowed to 7.5% in May. It does so after reaching its highest level in 11 months in April, at 7.8%. The data is key, waiting for the National CPI to be known the following week, which will be reported by INDEC, where the main private consultants already estimate that it will be around 8%.
In this context, the Buenos Aires price index accumulates a rise of 41.1% in the first five months of the year and an interannual variation of 114.4%. 7% seems to be a floor for inflation in the City since, if we take into account the last 5 figures, 3 of them were around 7%, while there was only a drop to 6% in the month of February and it was close to 8% in April.
This variation of the IPCBA, as indicated by the General Directorate of Statistics and Censuses of the City, responded mainly to the items Food and Beverages (6.6%), Alcoholic beverages and tobacco (8.6%) and Clothing and Footwear (7.9%). The most surprising increase is that of Housing, water, electricity, gas and other fuels, which reached 12.5%, leading all items.
What were the main increases?
“Housing, water, electricity, gas and other fuels averaged an increase of 12.5%, contributing 2.15 pp to the monthly variation of the IPCBA, mainly due to the adjustments in residential electricity service rates and prices of rents. They were followed in importance by the increases in the values of common housing expenses and in the residential service of natural gas through the network,” reported the Buenos Aires Statistics Center.
Food and non-alcoholic beverages increased 6.6%, with an incidence of 1.22 pp in the General Level. Within the division, the main impulses came from Milk, dairy products and eggs (12.2%) and Bread and cereals (10.1%). To a lesser extent, the increases in Sugar, confectionery and desserts (11.1%) and Meat and derivatives (2.0%) stood out.
Transport registered a rise of 7.6% and had an impact of 0.76 pp, due to the increases in the values of automobiles, in the taxi fares5 (which came into effect on May 6) and in the prices of fuels and lubricants for vehicles for home use.
inflation.JPG
Regarding the incidence of prices of seasonal products, it was 3.5%. Meanwhile, regulated items averaged a 10.3% rise, mainly due to adjustments in residential electricity service rates. Next in importance were the increases in prepaid medicine quotas, in the residential service of natural gas through the network and in the value of the taxi ride. In year-on-year terms, this aggregate accelerated to 113.1% yoy (+9.9 pp).
Source: Ambito
