In June, the Domestic Wholesale Price Index (IPIM) compiled by INDEC had increased by 2.6%.
The Wholesale inflation accelerated to 3.1% in July, contrary to the decline in retail sales for the same period. Increases in agricultural products accounted for most of the performance.
He Domestic Wholesale Price Index (IPIM) prepared by the INDEC had increased by 2.6% in June, which is why the deceleration process so celebrated by the government was not sustained.
In the national productsincreases accelerated from 2.7% to 3.3%. Within this division, the rise in primary products stood out, going from 4% to 5%. Likewise, Among primary products, agricultural products showed a jump of 7%compared to 3.3% the previous month.
Meanwhile, increases in manufactured products They went from 2% to 2.7% between June and July. Within this segment, the increases in prices of machinery and equipment (+4.6%), refined petroleum products (+4%) and vehicles (+2.8%) stood out.
The imported products showed an increase of just 1%, showing a slowdown from the 2.2% in June. This was in line with the stability in the official exchange rate and falls in financial dollarsmainly due to the announcement of intervention by the Central Bank (BCRA) to contain the exchange rate gap, which had been escalating.
Wholesale inflation is below retail inflation
In the cumulative year of 2024, wholesale prices rose 55.2%well below the 87% recorded by the Consumer Price Index (CPI) of INDEC itself.
Except in December, when the IPIM registered a strong jump due to the devaluation of the local currency, in all the other months of the Milei era Wholesale prices lagged behind retail prices.
It is worth remembering that in July the CPI rose 4%, the lowest figure since January 2022. The market believes that the disinflation process may continue for a few months, but sees it difficult to break through the 3% floor, taking into account the current level of the official exchange rate, the stagnation of core inflation and the adjustments in regulated prices that continue to be observed.
Source: Ambito
