The February inflation slowed to 13.2% and it was below what the market expected (close to 15%). It should be noted that in January the increase had been 20.6% and in December it was 25.5%. Despite this, The CPI accumulated an increase of 36.6% in the first two months of the year and in the interannual comparison, the increase was 276.2%, the INDEC reported this afternoon.
The division with the greatest increase in the month was Communication (24.7%)due to increases in telephone and internet services and Transportation (21.6%) due to increases in public transportation fares. They also topped the podium Housing, water, electricity, gas and other fuels (20.2%) given the advance in the electricity consumption rate.
On the other hand, the division with the highest incidence in all regions was Food and non-alcoholic beverages (11.9%), which rose below the general price index. Within the division, the increases in Meats and derivatives; Bread and cereals; and Milk, dairy products and eggs.
In turn, the sectors that registered the smallest variations in February were Recreation and culture (8.6%) and Clothing and footwear (7.2%). At the category level, Regulated (21.1%) led the increase followed by the Core CPI (12.3%), while Seasonal registered an increase of 8.7%.
Inflation: what the February measurement leaves us
Lautaro Moscheteconomist of the Freedom and Progress Foundationassured that although the deceleration of the CPI for the second consecutive month “is a good symptom of the effects of the monetary policy adopted by the current government,” despite this, “We are still going through very difficult months in terms of inflation”.
In this regard, he mentioned that a factor to take into account is that how regulated prices lagged far behind, large magnitude updates are seen. Among them are, lElectricity rates, public transportation, prepaidetc.
In fact, “if one takes the last 3 months, The accumulated core inflation was 73% while the regulated inflation grew 85%. This tells us that the repressed inflation of recent years is coming to light and relative prices are normalizing,” Moschet added.
Inflation: they foresee a slight “rebound” for March
The price index that it prepares FAITHFUL registered in the first week of March an increase of 5.7%, the largest weekly increase since the beginning of the year. It rose 15% compared to the first week of February and 304.7% in the year-on-year comparison. “The largest weekly increase corresponds to Regulated (8.5%) as a consequence, mainly, of the increase in prepaid”he clarified.
For its part, since LCG They pointed out that the survey of prices of food had a 3.6% weekly increase, accelerating 2.3 pp compared to the previous week. “Average monthly inflation appears to be stabilizing at a still high level. This week it reached 12%, accelerating again compared to the previous week (+0.5 pp). At the same time, the percentage of products with increases remains practically constant at 33% of the total, which means that the total basket adjusts every 3 weeks,” the consultancy explained.
Meanwhile, since C&T alerted by the acceleration in food prices in the last days of February. A dynamic that, “along with the rise in electricity in the middle of the month, leaves a statistical drag of about 3% for Marchmonth in which education adjustments will have significant weight and to which an increase in gas can be added.”
Source: Ambito
