The index that the City marked put economists on alert. However, a different weighting of public services and goods is what would have made the difference.
INDEC will release this Wednesday July inflation rate coming up, amid government expectations that this key indicator has experienced a decline after a slight rebound during the sixth month of the year.
In June, the cost of living had risen by 4.6%, But the Government hopes that in July it will have broken through the 4% floor. to resume the decline that began last December, after the 25.5% rise that the devaluation produced when Javier Milei arrived at the Casa Rosada. The surprising rise that The cost of living index in the City of Buenos Aires, which rose by 5.1%, conspires against that possibility.Some specialists point to the weighting of public services in this indicator as the main cause of the increase, although analysts indicate that the different weight of public services and goods at the national level, compared to the City, would explain the increase.
What inflation do consulting firms expect for July?
The consulting firms that report their projections to the Central Bank calculated that the cost of living was located at 3.9% in July as reported by the Market Expectations Survey (REM). In the case of C&T Asociados projected a variation of 4.4% for July, while Ara Analyticathe cost of living in July would also have been around 4%slightly below.
“After a June where the rate update contributed to accelerating nominality, In July, inflation became the priority again, leaving aside the updating of tariffs and increasing the fuel tax by an amount lower than that initially stipulated,” explained the consulting firm EcoGo.
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Reuters
In the case ACM, July cost of living estimate is around 4.2%so prices would not be able to break through the floor that the Government had targeted for the seventh month of the year.
On the contrary, for Liberty and Progress, prices rose 3.9% average in July and the Executive Branch would have reasons to celebrate a new drop in inflationary inertia. And for the study of Orlando Ferreres and Associates, was located just below 4%. On the other hand, the economic team of the center CESO projected between 4% and 4.5% during July, which would give numbers similar to those of the last two months.
Source: Ambito
