December inflation: the reaction of national politics

He National Institute of Statistics and Censuses (INDEC) announced that the inflation for the month of December was 2.7% and the political leadership expressed through social networks a new period of stability but with growth compared to November, when it was 2.4%.

One of those who spoke about it, in conjunction with the reduction of “crawling peg“was the presidential spokesman Manuel Adorni: “What disorients the rancid politics arrested in the decadence of other times is that For the first time, a President of the Nation fulfills what he promised during his electoral campaignwhich represents for all of them an absolutely hostile and incomprehensible terrain”.

For its part, owner of the block of Freedom Advances in the Chamber of Deputies, Gabriel Bornoronipointed out: “We continue on the path of a constant decrease in inflation. We have to continue on that path until we have eradicated this cancer that only generated poverty. Those who do not see it cry“.

From the same space, José Luis Espert pointed out that “inflation fell from 25.5% to 2.7% in one year. Excellent work of Javier Milei, Luis Caputo and the entire team. We continue on this path and we are going for more.” “Thank you Javier Milei for destroying inflation,” summarized the deputy. Santiago Santurio.

In the midst of the tension between the ruling party and the PROa member of that bench, the deputy Damian Arabia He stressed that “the process of deceleration to extraordinary steps. It is the December with the lowest inflation since 2018 and in December 2023, Kirchnerism had left wholesale inflation at 54% and rising. Extraordinary result of the economic plan“.

In contrast, the legislator Gabriel Solano (FIT) criticized that “the inflation of 2.7% in December is not only one of the highest in the world. The most serious thing is that it contrasts with the 1% parity that the government wants to impose on workers to continue destroying salaries. It is the currency that the government offers to businessmen who complain about the exchange rate delay. “In order to compete with imports, they propose an alliance against the workers.”

December inflation accelerated to 2.7%

The December inflation was 2.7%, which implies that accelerated regarding November where it had marked 2.4%, the lowest value in the year. Despite this, it registered 117.8% throughout the year, the lowest interannual value at least in all of 2024, as reported this afternoon by the National Institute of Statistics and Censuses of the Argentine Republic (INDEC).

Housing, water, electricity, gas and other fuels It was the sector with the greatest increase in the month (+5.3%), due to increases in housing rents and services such as electricity, gas and other fuels. The division followed Communication (5.0%), due to increases in telephone and internet services.

The two divisions with the smallest variations last month were Clothing and footwear (+1.6%) and Home equipment and maintenance (+0.9%). The division with the highest incidence at the general level was Food and drinks; while in GBA, the highest incidence was recorded in Restaurants and hotels.

The official explanation

The Minister of Economy, Luis Caputo clarified that the acceleration of inflation in December responded fundamentally to seasonal factors. In that sense, he chose to compare the data against previous Decembers, which leads to finding the smallest increase for the month in question since 2018.

This Tuesday the INDEC reported that the Consumer Price Index (CPI) rose 2.7% in the last month of the year, thus exceeding the 2.4% increase it had presented in November. “This occurs in a month in which The index presents a positive seasonality, linked to the holidays and the beginning of the summer vacation periodand in a context where both economic activity and the real income of the population show a strong recovery,” Caputo said in X’s account.

“Indeed, the Monthly Economic Activity Estimator (EMAE) accumulated a growth of 2.3% between December 2023 and October 2024, while salaries in the registered private sector (SIPA), retirements and Universal Child Allowance (AUH) showed an increase in real terms of 15.4%, 12.8% and 107.4%, respectively, in the first eleven months of the year,” the minister continued.

To conclude, he considered that “unlike other opportunities, the Growth in the real income of the population and credit to the private sector occurs as a consequence, and not to the detriment, of the macroeconomic order. The deepening of disinflation and the return to the private sector of resources that until 2023 were destined to finance the public sector, allow this expansion to be genuine and sustainable.”