The price gap between Uruguay and Argentina showed a slight increase in May, the first since Javier Milei is the president of the neighboring country, which raises an alarm signal for the economy, after the problems caused by the exchange difference between 2021 and last year.
He Border Price Indicator (IPF) which is prepared bimonthly by the UCU Salto Economic Observatory, to which he agreed Ambit, reflected an increase of 9% compared to March, so that Leap It was 59% more expensive than Concord, after months where a sustained and significant decline was recorded.
Thus, the IPF remains above the pre-pandemic, when the values were around 40%, but it is also very far from the high percentages recorded between September 2021 and last January, with a maximum of 180% in September 2023.
The rise of the blue dollar stopped the sustained reduction of the price gap
The economists María José Medin and Gimena Abreu, authors of the study observed that the rise in Dolar blue In the neighboring country it was the predominant factor, since after remaining level, it increased its value by 18% in May and to date it has accumulated four weekly increases, to 1,235 Argentine pesos for purchase and 1,265 for sale. Meanwhile, the US currency in Uruguay It also appreciated, but by 1.57% monthly in the same period.
Regarding the level of inflation, The IPF specified that the accumulated to April of the Pampas region Argentina, used as a reference, was 64.1%, with 8.8% in April. In parallel, the CPI that measured the INE It was 0.4% in May, with a growth of 3.25% so far this year.
Thus, Medin and Abreu concluded that the growth of the exchange rate difference “can be explained by the increase in the exchange rate in Argentina, derived from factors such as the decline in interest rates in pesos, the political uncertainty and the “low settlement of dollars from the field.”
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How was the price gap in each item?
Beyond the notable reduction in almost all items during recent months, when evaluating by division it is observed that the price gap reached its highest level in Meals outside the home, increasing from 126% to the current 135.5%. Something similar happened with Alcoholic beverages and cigarettes, which reached a difference of 90.2%, when it was 71% in the previous measurement.
As to Food and non-alcoholic beverages, the most influential division with a weight of 49% in the total, the gap was 58.5%, growing from 46% in March. As a curiosity, it is highlighted that the rice It was the only product that was cheaper in Leap.
In relation to Transportation and fuels, the variation grew from 29.9% to 34.4% in the liter of naphtha, taking into account the reduction of Imesi. Without that benefit, the difference would skyrocket to 124%. He gasoil, Meanwhile, it reduced the gap slightly, from 61.1% to 60.3%.
On the other hand, the difference in the category Clothing and footwear fell from 14% to 8%, while in Domestic products grew from 51% to 64.9%. Finally, Various goods and services rose slightly, going from 54% to 58%, according to data from the UCU Jump.
Source: Ambito
