The slight rebound in food prices is presented in a context in which the Government seeks to consolidate the inflationary deceleration.
In mid -March, the National Institute of Statistics and Census (INDEC) will announce the Consumer Price Index (CPI) corresponding to February. However, analysts already begin to project the data and evaluate whether the downward trend can be maintained.
After 2.2% registered in January, February inflation could be slightly above this level, according to various estimates of the private sector.
February inflation: What do projections say
“February is giving us around 2.3%, slightly above January. The meat was what most impacted, along with some increases in fruits and vegetables,” he said Fausto Spotorno, Director of the Center for Economic Studies of Orlando Ferreres & Associates.
The slight rebound in food prices is presented in a context in which the Government seeks to consolidate the inflationary deceleration. However, according to Spotorno, reducing inflation at these levels becomes more complex.
Why lower inflation will be more difficult
“Although inflation we see in descent, at these levels lower it is much more difficult than last year. Lowering an inflation point is to reduce half,” said the economist.
According to Spotorno, services are showing higher inflation compared to goods. This is due to two main factors:
- Rate rear: “Some services were late and are now adjusting prices, such as electricity, gas and water. These items will continue to show increases above average.”
- Salary recovery: “An improvement in real wages is being seen. And the services, in general, depend more on salaries than the production of goods. Between the increase in income and the adjustment of the rates, the prices of the services are rising above the general inflation, which could delay the deceleration of the IPC.”
Future expectations
The February inflation fact will be key to evaluating the rate of deceleration of prices in 2025. While the government is committed to continuing with the descending trend, the corrections in rates and the dynamics of wages could play a determining role in the evolution of the CPI in the coming months.
Source: Ambito
