According to the monthly survey carried out by the ISEPCi In 850 local businesses in popular neighborhoods in 20 districts of the Buenos Aires suburbs, last November a family of two adults and two children needed to purchase their essential food throughout the month. $182,905while in December, already with Javier Milei at the head of the Government, the same family required to have the same food on their table the sum of $271,572, 48.5% more than thirty days before.
This abrupt increase in December also contributed to strongly raising the annual variation of the basic basket measured by the institute, which was already very high (185% from November 2022 to the same month of 2023). Thus, throughout the entire year 2023, the CBA rose by more than 323%.
For its part, the Total Basic Basket (CBT) which also measures the ISEPCiwhich includes, in addition to food, a set of products that are equally essential for the daily lives of families, had an increase of 45.7% in December, while the increase throughout 2023 reached 292%.
In the twelve months of 2023, meat led the increases with 354%, followed by warehouse products that increased 350%, and vegetables and fruits had increases of 222%.
The “solution” to inflation: market freedom
The inflationary acceleration He has been in Argentina for several years, ISEPCi It dates back to 2007, during the former president’s first term. Cristina Fernández de Kirchnerwhere successive responses to price increases were greater state intervention, “which never occurred.”
In contrast to interventionism, Javier Milei developed an argument of “market freedom“. Through it he intends a “self control“of monopolies and moderation of price increases in the economy in generaland food in particular.
According to his theory, the great price makers who in these years were acquiring more and more power, and who never stopped pushing to increase their profits by raising prices, now that no limitations are applied to them, they are going to restrict themselves, inducing a downward inflationary trend.
Some holidays that are difficult to solve
According to the institute’s survey, prices for an austere Christmas and/or New Year’s dinner, made up of 22 basic products, increased 209% compared to the same month last year if they chose to eat chicken, while if they chose to eat meat amounts to 278%.
At the end of 2022 this chicken dinner could be covered for $6,785, while this year it cost $20,966. With roast last year it cost $8,060 and this year it cost $30,466. It should be noted that many families do not have that amount of money to spend on a single meal, so reduced meat consumption.
It becomes complex for a family in which the head of the household each has a registered job and earns the minimum wage, having been able to spend more than $50,000 to enjoy one dinner with roast and the other with chicken on both dates. Not to mention if they depend on informal jobs, with salaries below the minimum.
“Once again, it is noted that in The popular neighborhoods where lower-income families live are where price increases impact first and most strongly.. Probably, in the following months there will be increases of lesser magnitude, but on the floor of values that will not decrease, in the meantime Minimum salaries and pensions, social allowances, remunerations for informal jobs, receive increases – if they receive them – always in smaller amounts.. For now, there is neither end nor light to this dark tunnel that the president put us in,” highlights the report from the ISEPCi.
Source: Ambito
