In the meantime, Food and drinks, the most important item in the basket measured by INDEC, showed a rise of 3.4%, just below the average.
As in September, seasonal issues were once again strongly influenced. Indeed, the price category Seasonal recorded a monthly jump of 8.1%, as a result of increases in clothing, the change in season, and in fruits and vegetables, which rose to 12% and almost 9% in some regions, respectively.
For its part, the variation in prices Regulated by the Government it decelerated from 3% to 1.9%. Likewise, inflation core, which does not take into account seasonal factors or state regulations, was 3.2%, against the 3.3% that had marked the previous month.
The median of the estimates of the consulting firms and financial entities that participated in the last Market Expectations Survey (REM) had yielded an expected inflation of 3.2% for October.
It should be remembered that in the middle of last month, after knowing the surprising inflation data for September, The Ministry of Internal Trade decided to move forward with the freezing of 1,430 mass consumption products until January. According to specialists, the effects of the measure will be seen more clearly in November.
“The price control includes nominal price retraction. If this occurred at the end of October, it was not enough to decelerate the index compared to September or it means that growth was still much higher and the nominal drop prevented an even higher rate. November is key to evaluating the incidence of control in food and beverages, since the mechanism was put in place with greater amplitude “, warned the economist Nadin Argañaraz.
This policy mainly affects the food sector and is only fulfilled in large supermarkets, which represent a limited portion of consumption at the national level.
The Institute for Social, Economic and Citizen Policy Research (ICEPCI), which conducts surveys in the Bonaersense suburbs, pointed out in its latest report that only 31 of the 57 components of the Basic Food Basket are included in the official list of frozen prices.
ICEPCI warned that “there are no fruits and vegetables or meats that complete the total of the basket” and that many of the neighborhood shops do not receive the products that appear in the list established by the portfolio led by Roberto Feletti.
With only two months to go to the end of the year, accumulated inflation is already 41.8%. Since January, the increases in Clothing and footwear (+ 51%), Restaurants and hotels (+ 48.8%), Transport (+ 47%) and Food (+ 41.2%) stood out.
There were also significant increases in two items without much impact on the CPI such as Education (+ 53.3%) and Health (+ 47.5%). This last division exhibited large increases in recent months from adjustments in prepayments, authorized by the Government.
Argañaraz highlighted that 8 of the 12 components of the CPI accelerated the increases in September-October, compared to the June-July-August quarter.
Based on the acceleration in recent months, the private sector adjusted its projections upwards and now foresees an inflation of 50.3% for all of 2021, according to REM data. In October, lAnnual inflation was 52.1%, lower than the 52.5% that had been registered in September.
Difficulties in controlling prices occur in the context of global increases that were not seen for a long time. In the United States, year-on-year inflation climbed to 6.2% in October, a record since 1990. In China, wholesale inflation was the highest since 1995. In the region, Brazil suffered the highest monthly price increase since 2002 and the y-o-y reached 10.7%, the highest in five years.
Source From: Ambito
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