The August inflation shot up to 12.4% in August, accelerating 6.1 percentage points (pp) compared to the 6.3% observed in July, after the devaluation of 20% of the pesoand accumulated 80.2% in the year, as reported this Wednesday by the National Institute of Statistics and Censuses (INDEC).
In this way, the Consumer Price Index (CPI) for the eighth month of the year, which was the highest since February 1991, when Argentina was leaving the hyperinflationand the price variation reached 27%.
The price variation reached 124.4% year-on-yearthe largest since August 1991.
This is the first inflation data after the devaluation of 20% of the peso, the day after the elections PASSED, which accelerated the pace of price inflation inertia. The week after the exchange rate jump, private consulting firms began to project a monthly price variation in double digits, in line with what was known this afternoon.
“The result was higher than expected. Now, taking into account that the rise derives from the devaluation (and the agricultural dollar in meats), the impact was immediate. Therefore, we do not expect it to be repeated in the short term,” he assured Area Sebastián Menescaldi director of the consulting firm Eco Go.
August inflation was a “pain for the entire country”
The items that increased the most in the last year were Restaurants and hotels (142.2%), Food and non-alcoholic beverages (133.5%), Health (127.8%), Recreation and culture (125.1%) and Home equipment and maintenance (125%), all above the general variation which was 124.4%.
At a monthly level, the segment that suffered the greatest increase was Food and non-alcoholic beverages, which soared 15.6%, followed by Health (15.3%), Home equipment and maintenance (14.1%) and Restaurants and hotels (12.4%).
Within foodwhich is the component with the highest weighting in the CPI, the products that increased the most were meat (25.6%), followed by vegetables (19.3%), baked goods (11.6%) and fruits ( 11.1%).
In Health“the recurring rise in prepaid bills was combined with the almost 20% rise in medications, a clear effect of the rise in exchange rates,” highlighted the consulting firm C&T Asociados.
Due to these strong increases, the economist and director of Analytics, Claudio Caprarullo He stressed that although the CPI is within what was estimated by the consulting firm he directs, “it continues to scare,” which is why he classified the inflation figure as a “pain for the entire country.”
How will inflation continue going forward?
As reported C&T Associates, the second half of August prices suffered a strong acceleration, “which leaves a very high statistical drag for September.” In this way, the consulting firm’s report highlighted that “despite a certain moderation so far this month, the same goal is to close again with double-digit inflation.”
In coincidence, M&R Associates pointed out that due to the devaluation that occurred in mid-August, inflation “will inevitably have a carry-over effect towards September, where some high frequency measurements estimate 6%“.
Source: Ambito
