ANDl Institute for Mass Consumption Studies (INDECOM) carried out a revealing study on the inflationary situation and the impact on salary income in Argentina. During the sixth month of the year, inflation registered weighted average has placed the rise in semi-annual prices at an alarming 57.8%. This generated serious consequences for the sectors of low income and middle classwho experience significant losses in your income during the last two years.
The data was collected through a detailed analysis of scanned product information andn 1988 points of sale, which include large supermarket chains, department stores, convenience stores, and Chinese self-service stores. The study was carried out in different geographical areas, such as the City of Buenos Aires, Greater Buenos Aires, Rosario, Mar del Plata, Córdoba, PosadasCorrientes, Mendoza, Paraná, Tucumán, Neuquén and Río Negro.
According to the results presented by INDECOM, the month of June recorded general inflation of 6.9%. However, when disaggregating the most sold basic food basket products, such as soft water, breakfast products and grocery ingredients, an even higher rise was evidenced, standing at 7.6%.
If the accumulated data for the first half of the year is analyzed, the general inflation index stands at 48.2%, a worrying figure resulting from the monthly increases of the last five months, which have been progressive and constant.
The Executive Director of INDECOM, Miguel Calvetewarned that the situation becomes more complex by focusing on increases in the basic food basket. If the increases of the previous five months are added together with the increase of 7.6% in Junethe increase in the first six months of the year amounts to a worrisome 67.5%.
Although June showed a slight slowdown compared to the preceding five months, Calvete clarified that this does not mean a real slowdown in inflation. Price seasonality plays a role in this apparent slowdownbut inflation is still a latent problem.
Inflation: INDECOM predicts a discouraging outlook
The future outlook is discouragingr, since INDECOM projects that annual inflation could reach approximately 120%.
In addition, the report highlights the impact on the income of the middle and low sectors, who register a significant drop in their income during the last two years. The family income of the poorest segmentss have decreased by 18%, even with some assistance planwhile middle-class wages have fallen by 16.5% without any kind of help. This led the lower segment of the middle class to be at risk of falling into poverty.
Regarding this issue, INDECOM highlighted that there is a worrying reality: more than 30% of formally employed Argentines are currently below the poverty line. This figure demonstrates a significant increase compared to the previous year.
Calvete expressed deep concern about this situation. according to his wordsall the indicators reflect a deteriorated situation that worsens month by month, generating significant losses in the purchasing power of the most disadvantaged sectors. This, in turn, deepens the growing social gap that exists with the more affluent strata of societyfurther increasing inequality in the consumption pyramid.
Source: Ambito
