If this percentage is confirmed, the accumulated figure for the year would be above 200%a three-digit figure that the country had not reached since the hyperinflation of 1990. Until last November, the last month of the full exercise of the government ofand Alberto Fernándezinterannual inflation accumulated an increase of 160.9% year-on-year, according to the Indec.
Last Tuesday, the presidential spokesman Manuel Adorni He maintained that the Government is carrying out a “plan to stabilize” the economy.
Amid the widespread increases in various items, the spokesperson warned that It will take a while to get out of the “inflationary trap.”
“It is a long process and the work we are doing to balance the accounts, of sconsolidation of the Central Bank, and this, impacted by the delay and distortion of almost all prices in the economy, means that we are going through this moment, which of course is going to take a while to get out of this inflationary trap,” said the spokesperson.
Inflation: what private individuals estimate for the month of December
From the private sphere, the Eco Go consultingestimated last month’s inflation at 29.4%, with a year-on-year jump of 222.8%.
The key to the increase in December was the 35.5% increase in food prices of 35.3%, although in the last week of the month a decline was observed, due to the meat price drops.
Meanwhile, the Survey of the LCG consulting firm estimated the average inflation for December at 28%, which represents a accumulated 218% for all of 2023.
Another measurement consistent with these data is the IPC of the Freedom and Progress Foundation, which showed an increase of 29% for the month and 219% for the year, the highest since 1990.
The LyP report noted that “the rise in the CPI in December is explained by the release of prices that were artificially delayed. Something that had served to show a lower CPI in previous months, but that was unsustainable.”
“Now we see that regulated prices are recovering lost ground and rising more than the rest,” he added.
Inflation: what to expect for the month of January
Despite the slowdown in recent weeks, the price increases in December leave a important inertia for January. This will be enhanced by other increases that have already been announced, such as the 45% jump in the bus fare in the AMBA, increase in tolls and subway and the increase of around 40% by prepaid companies.
Meanwhile, the inflation expectation for the next 12 months more than doubled in December to 225.9%, according to a report from the Torcuato di Tella University (UTdT)
The price increase registered “a great increase” going from 107.2% in the November measurement at 225.9% in December, according to the monthly survey carried out by the UTdT. The field work on which this index was developed was carried out between December 11 and 15, after the assumption of Javier Milei to the presidency.
Source: Ambito
