According to this work, interannual inflation reached 260.4% in twelve months and 52.4% in the last two months; It slowed down 1.7% in January compared to December. For the UMET, January was marked by the statistical carryover effect of December, caused by the devaluation.
Furthermore, the real salary contracted 20% between November and January“one of the most drastic contractions since there is a record in such a short period of time,” warned the house of higher education.
What rose the most in January 2024
Inflation in the first month of 2024 was driven by Transportwhich rose 27.1%, due to increases in gasoline and air tickets.
Food and drinks continued climbing above the average (26.1%), with a clear effect of the December devaluation on prices of this item.
The category “Other goods and services” rose 25.7%, with strong increases in personal hygiene products; Education (25%) and Communications (23.7%) also rose above the average.
The item remained at a number similar to the average Health (22.6%, in a month with strong adjustments in prepaid bills and medications), followed later by Recreation and culture (twenty%), Home equipment (18.4%), Clothing and footwear (16%) and living place (13.6%).
Regarding salaries, the report warned that “the severe inflationary spike in recent months is having a strong impact on purchasing power, something that is beginning to be reflected in high-frequency indicators such as retail consumption or industrial production linked to the domestic market.” “.
“Two months have been enough for this new government to plunge Argentina into a situation of social fragility unprecedented since the 2001 crisis. Two months to generate 52% inflation and deteriorate purchasing power by approximately 20% since November” said the executive director of the Center for Concertation and Development of that university, Nicolas Trotta.
Source: Ambito
