He price of beef averaged $7,445 per kilo to the consumer in July of this year. This value represents a decrease of 16% in real terms compared to the price recorded at the end of 2023. According to a study by IERAL of the Fundación Mediterránea, the reduction in prices had an impact in mitigating inflation so far this year.
The decline in the cost of beef contributed to a decline in the inflationsince meat represents a significant part of the consumption basket used to calculate price indices.
The report prepared by Franco Artusso estimated that the share of beef in inflation went from contributing 2.2 percentage points in December 2023 to just 0.11 points in July 2024, thanks to falling prices.
How much did beef consumption fall?
He apparent consumption of beefcalculated as production minus exports, fell 20% year-on-year during the first half of the year.
This decline in consumption is mainly due to the decline in consumer purchasing power and the decline in economic activity, which has led to an adjustment in food spending. In this context, the fall in Beef consumption reached historic lows and reflects the harsh economic reality facing Argentine households, they noted.
However, despite this decline, the Current price is still high compared to the historical average of 2007 to 2023.
In order to adjust their expenses, many families began to resort to cheaper alternatives such as chicken and porkas beef remains expensive in relative terms.
Beef: What is the basis for price stability?
Looking to the future, there are emerging Two big questions: Will beef prices continue to fall, contributing to the price slowdown, or will they start to rise again?
The answer will depend on various factors, including the evolution of economic activity and the behavior of the supply and demand market.
On the one hand, the decline in meat production During the first seven months of the year, together with an increase in the value of cattle destined for the domestic market, this suggests possible upward pressure on prices.
In addition, the reduction of tariffs for meat products could increase export prices, putting additional pressure on costs in the local market. These factors could lead to a Adjustment in beef prices in the coming monthsputting it back at the center of the economic debate, they noted.
Source: Ambito
