Workers’ inflation marked 7.4% in June

The report is in line with other private studies and the Survey of Market Expectations who unveiled the BCRA last Friday, where the main consultancies see inflation for June at 7.3%.

In this way, according to the UMET, inflation reached 52.5% in the first six months of the year, a figure that if annualized for the rest of the year becomes 132.5%. Meanwhile, year-on-year inflation reached 118.5% and showed the seventeenth consecutive acceleration.

Inflation: what were the most significant increases

During June, “the rise was once again driven by Housing expenses that rose 10.6% driven by increases in electricity, expenses and rents,” the report highlighted. Meanwhile, Food and beverages was below the general index with a rise of 6.6 percent.

For the director of the CCD, Nicholas Trottanow “it is fundamental that the renegotiation of the agreement with the IMF manages to contain the inflationary aspects of the fixed goals, to limit the maximum possible its effects on wages.”

According to the analysis of the IET experts, “inflation in June was once again driven by Housing (+10.6%)driven by increases in electricity, expenses and rents”.

“Second, it’s Recreation and culture (+10%), followed by Education (+9.9%), Health (+9.2%), Communications (+8.2%) and Home equipment and maintenance (+7.9%)”. And they also warn that “below from the average were Other goods and services (+6.8%), Food and beverages (+6.6%), Transportation (+4.4%) and Clothing and footwear (+4.2%)”, he completed.

Within Food and Beverages, the item with the greatest weight in the basket, the greatest increases occurred in dairy products (8.6%) and oils and fats (8.4%).

The index was cushioned by meat (with more moderate increases, of 3.6%) and mainly seasonal products such as fruits (-1.7%, driven by oranges, which fell 14.4%) and vegetables (1.6%, which is explained by lettuce -which fell 5.2%- and perita tomato – which fell 6.2-).

For his part, the general coordinator of the IET, Fabian Amico, explained that “the June price index is marked by elements of acceleration such as tariffs and regulated prices, and deceleration such as food.” “The rise in tariffs is decisively affected by the requirements contained in the agreement with the IMF,” he specified.

“On the food side, there was a very significant drop in seasonal products and in the price of meat, but also in other substitute products. This is partly explained by an internal cycle of meat with a temporary excess supply and also by the drop in international prices such as that of wheat, which is used to produce all kinds of meat,” he added.

Next Thursday, July 13 at 4:00 p.m., the INDEC will release the official data, which the Government hopes, will confirm a second month of consecutive loss in the inflation.